Offshoring to low-income countries reduces permanent income risk for workers.
Increased offshoring can lower the risk of permanent income fluctuations for workers. This means that when companies move production to other countries, it can lead to more stable incomes for employees. The study looked at how offshoring affects the variability of incomes, rather than just the overall impact on the job market. The researchers found that offshoring to lower-income countries can have a strong effect on reducing long-term income risk, which could potentially benefit workers in the long run.