Since low-skill offshoring is more prominent than high-skill offshoring, on aggregate, engaging in a wider backward participation is associated with lower wage inequality. When it is a low-skill (high-skill) task that is received, then the labour-augmenting productivity effect pushes the wages of low-skilled (high-skilled) workers up thereby reducing (increasing) wage inequality. However, in this instance it is the high-skill effect which dominates and therefore being the recipient of an offshored task tends to increase wage inequality.