Use this identifier to quote or link this document:

Low-skill offshoring and welfare compensation policies
Agnese, Pablo; Hromcová, Jana
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada
We analyze the effects of low-skill offshoring on welfare. In the context of a matching model with different possible equilibria, we discuss two alternative policies that could potentially outweigh the negative welfare effects of offshoring, namely, a change of the unemployment bene.ts and the .exibilization of the labor market. Our calibrations for the German economy suggest that the .exibilization of the labor market can bring low-skill workers to pre-offshoring welfare levels by slightly reducing the vacancy costs, something that cannot be accomplished by meddling with the unemployment bene.ts scheme. In addition, we .find that a full compensation can be achieved by an upgrading of low-skill workers, its size depending on the type of equilibrium involved. In sum, our analysis gives support to .exibilization and upgrading by education as best therapies for offshoring.
Unemployment benefits
Labor market flexibility
331 - Treball. Relacions laborals. Ocupació. Organització del treball
Mercat de treball
Contractació externa
L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons:
29 p.
Working Paper
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada);15.05

Full text files in this document

Files Size Format
wpdea1505.pdf 454.4 KB PDF

Show full item record