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This paper considers whether offshoring has been a contributing factor to the increase in the wage gap between lower and higher skilled workers. It shows that offshoring was not a driver of the increasing skills premium in the United Kingdom between 1992 and 2004. On the contrary, the wage gap would actually have been bigger in the absence of offshoring. Offshoring reduced the wage gap between the most skilled and the least skilled workers in the UK relative to what it would otherwise have been.

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