However, the type of offshoring appears to matter. A higher degree of low-skilled task offshoring is associated with lower wage inequality. This happens because offshoring low skilled tasks leads to a productivity boost to remaining low-skilled workers and therefore an increase in their wage thereby reducing the gap between high and low skilled wages. Similarly, offshoring high-skilled tasks also leads to a productivity boost to this type of labour and therefore higher high-skilled wages with a consequent increase in the gap between high and low skilled wages.