The Benefits of Outsourcing

AHN reports on a very important study by Gene Grossman and Esteban Rossi-Hansberg who show that outsourcing actually benefits low-skill workers

They hold that outsourcing "had actually increased real wages for the least skilled among U.S. workers by about a quarter of a percent per year between 1997 and 2004."

One of the biggest arguments against outsourcing has been that it hurts workers at the bottom of the occupational hierarchy, but the two Princeton economists show that this assumption does not accord with historical fact.

Interesting and important.

Read it here.