This paper examines the effects of human capital on SMEs' participation in global value chains using Indonesian firm-level data. The paper adopts the discrete choice modeling of the probit framework to examine the behavior of firms in the export market. In particular, it examines SME behavior in...

1. Introduction -- 2. Economics of outsourcing : a literature survey -- 3. Outsourcing decisions : theory and evidence -- 4. Outsourcing and labour productivity -- 5. Outsourcing and wage inequality -- 6. Outsourcing in emerging countries : a case study from Vietnam -- 7. Managing global supply...

We study the political economy of labour market policies. First, it is shown that tax and redistributive considerations lead inside workers to prefer spending on active labour market programmes to passive spending, e.g., on unemployment benefits. We also show that greater active spending may be...