We analyze the effect of low-skill workers offshoring on the welfare of the economy. In the context of a matching model … unemployment benefits to compensate for the negative welfare effects of offshoring, it would only take a small reduction in the … with different possible equilibria, we discuss two policies that could potentially outweigh the negative welfare effects of …

Most Continental European labour markets and welfare states underwent a substantial transformation over the last two …

-deteriorating effects of offshoring. As a result, we aim at restoring welfare by increasing the opportunity cost of staying low-skill. In …We discuss the effects of low-skill offshoring on the endogenous schooling decision of workers along with the potential …. Our exercise suggests that the endogenous adjustment of low-skill workers can only partially offset the welfare …

response to parametric reductions in the cost of offshoring. We identify qualitative conditions under which wages and welfare … increase or decrease in the developing world as a result of a reduction in offshoring costs. Since global welfare always rises …The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are …

skill-biased technical change (SBTC) where overall welfare is improved. In a policy exercise we show that, if offshoring …We discuss the effects of offshoring on the labor market in a matching model with endogenous adjustment of educational … skills. We carry out a comparative statics analysis and show that offshoring leads to a restructuring of the economy through …

This paper studies the relationship between immigration and offshoring by examining whether an influx of foreign … of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact … that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage …