The goal of this project is to analyse the relationship between offshoring and labour income risk. The project thereby sheds light on an aspect which has so far received little attention in the literature but nevertheless bears important consequences for growth and welfare. The project aims at connecting two strands of the literature. On the one hand, it analyses labour income risk and documents it for Germany. On the other hand, offshoring is explicitly analysed as a possible determinant of changes in income risk. This latter connection is modelled and estimated in an econometric panel framework. The results with respect to income insecurity can provide for important insights in the political discussion on adjusting institutions geared towards income risk reduction.