Another one for the "I told you so" file
Two Princeton University economists claim that job outsourcing increased productivity and real wages for low-skilled U.S. workers.
Princeton professors Gene Grossman and Esteban Rossi-Hansberg debated that salaries for the least-skilled blue collar jobs had been increasing since 1997 as outsourcing pushed productivity....
The Princeton economists say that critics tended to gloss over the productivity benefits that come with offshoring labor.
Update: Here is the Grossman-Rossi-Hansberg paper.