@TechReport{iza:izadps:dp17663,
            	author={Kim, Gueyon and Lee, Dohyeon and Pozzoli, Dario},
            	title={Offshoring, Matching, and Wage Inequality: Theory and Evidence},
            	year={2025},
	month={Jan},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17663},
            	url={https://www.iza.org/publications/dp17663},
	abstract={This paper examines how offshoring affects worker skill demands and studies its implications for wage inequality. Using Danish administrative data, we find that offshoring increases firm-level demand for higher skills in occupations with high exposure to foreign competition. This effect is more pronounced in low-productivity firms, highlighting distributional impacts across firms. By constructing a Becker-type worker-firm matching model in a global economy, we demonstrate underlying mechanisms and quantify the role of offshoring-induced adjustments. Offshoring increases firm similarity in worker skill and wages within high-exposed jobs, leading to a decrease in between-firm inequality—a contrast to the effects of technological change.},
	keywords={offshoring;worker-firm matching;segregation by skill;wage inequality;between-firm inequality},
            }