@TechReport{iza:izadps:dp12593,
            	author={Agnese, Pablo and Hromcová, Jana},
            	title={Offshoring and Skill-Biased Technical Change in the Context of US Protectionism},
            	year={2019},
	month={Sep},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12593},
            	url={https://www.iza.org/publications/dp12593},
	abstract={We discuss the effects of offshoring on the labor market in a matching model with endogenous adjustment of educational skills. We carry out a comparative statics analysis and show that offshoring leads to a restructuring of the economy through skill-biased technical change (SBTC) where overall welfare is improved. In a policy exercise we show that, if offshoring were to be opposed by a protectionist agenda, labor market flexibility can bring about the same welfare gain. In addition, we offer an empirical analysis aimed at verifying the correlation be- tween offshoring and SBTC in US manufacturing industries in recent years. Our results show that different offshoring strategies affect SBTC differently. In particular, the evidence suggests that while high-skill offshoring strategies open the skill gap, low-skill offshoring strategies tend to work in the opposite direction. },
	keywords={skill-biased technical change;skills;offshoring},
            }