Journal Article

Offshoring to a Developing Nation with a Dual Labor Market

Abstract: We present a model of offshoring of tasks to a developing nation characterized by a minimum-wage formal sector and a flexible-wage informal sector. Some offshored tasks are outsourced by the formal sector to the lower-wage informal sector.

JEL Classification: F1;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2020-07

Volume: 102

Issue: 3

Pages: 237-253