Offshoring to a Developing Nation with a Dual Labor Market

Bandyopadhyay, Subhayu; Basu, Arnab K.; Chau, Nancy H.; Mitra, Devashish

doi:10.20955/r.102.237-53

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;

https://doi.org/10.20955/r.102.237-53