By allowing work to be done externally, broadband technology has increased outsourcing

Domestic outsourcing has grown substantially in developed countries over the past two decades. One reason for this is technological change that allows work to be done externally. Antonin Bergeaud, Clement Malgouyres, Clement Mazet-Sonilhac and Sara Signorelli show that broadband technology increases firm productivity and the relative demand for high-skilled workers. Both low- and high-skilled workers in non-core occupations were more likely to be outsourced after the arrival of broadband. But only high-skill workers experienced salary gains from being outsourced, while low-skill workers lost out.