Offshoring lowers wages, shifts workers to less competitive sectors, study finds.
The article looks at how sending jobs overseas affects workers in Denmark. Offshoring lowers wages for workers and makes it more likely for them to move to less productive companies. Less-skilled workers are at higher risk of changing to less competitive industries. Companies benefit by getting higher-skilled workers for less money. Technology increases the gap between companies in terms of worker skills and wages, but offshoring helps reduce this gap.