One possible explanation for this could be that the role of changes in offshoring on changes in wage inequality depends on whether the offshoring activity engages high or low skilled workers as is suggested in the theoretical literature (Grossman and Rossi-Hansberg, 2008, and Zhu and Trefler, 2005). This suggests that it is necessary to look deeper into the composition of the participation rate in order to better understand the drivers of changes in wage inequality. The results (Table A.8) suggest that there is a positive correlation between forward participation and wage inequality (which holds when considering emerging and developed countries) but this variable again becomes insignificant in the changes specification (the right panel).