Table 4: Sector bias of international outsourcing (theoretical results).

Scenario Low-skill intensive IndustryHigh-skill intensive Industry
Low-skill partHigh-skill partLow-skill partHigh-skill part

Relative wages of the high-skilled
Relative labor unit requirements of the high-skilled ( 𝜎 𝑌 > Δ Θ / 𝜃 𝑋 𝐻 ) ( 𝜎 𝑋 > Δ Θ / 𝜃 𝑌 𝐿 )
( 𝜎 𝑌 = 1 )( 𝜎 𝑋 = 1 )
OutputHigh-skill intensive Industry High-skill intensive Industry High-skill intensive Industry High-skill intensive Industry
Low-skill intensive Industry Low-skill intensive Industry Low-skill intensive Industry Low-skill intensive Industry
( 𝜎 𝑌 = 1 )( 𝜎 𝑋 = 1 )
EmploymentHigh-skill intensive Industry High-skill intensive Industry High-skill intensive Industry High-skill intensive Industry
Low-skill intensive Industry Low-skill intensive Industry Low-skill intensive Industry Low-skill intensive Industry