Who are the winners and losers from outsourcing?

International outsourcing is a growing phenomenon in world trade, and its 30% approximate increase between 1970 and 1990 has sparked a lot of interest in recent academic literature and the business press. CEPR DP6484 adds to previous studies on outsourcing’s implications for labour markets by investigating its effect, measured in terms of imports of intermediates, on wages for different skill groups.