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 …

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 …

This paper studies the welfare and policy implications of globalization when risk averse workers face the risk of … welfare of workers but could reduce social welfare as well. Both unemployment benefits and severance payments can protect … workers against labor income risk, but the latter enhances welfare more if job destruction is the source of unemployment. When …

-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 …

This paper estimates the effects of offshoring on labour market inequalities between skill groups based on German … industry level data from 1995 to 2007. Our main findings are the following: First, offshoring is on average biased in favour of … sector, material offshoring, and offshoring to Central and Eastern Europe. Second, we find that the labour market adjusts to …

This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A … novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost …, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is …

domestic labor force at the sector-level. In order to better elucidate the offshoring employment relationship, this paper … production-side shock that changes firms' offshoring decision can influence the local economy and its labor market. …