Low-skill offshoring and welfare compensation policies
Agnese, Pablo
Hromcová, Jana
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada

Publicación: Universitat Autònoma de Barcelona. Departament d'Economia Aplicada 2015
Descripción: 29 p.
Resumen: 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.
Ayudas: Ministerio de Economía y Competitividad ECO2012-37572
Derechos: L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: Creative Commons
Lengua: Català
Colección: Departament d'Economia Aplicada. Documents de treball
Colección: Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada) ; 1505
Documento: Working paper
Materia: Mercat de treball ; Contractació externa ; Offshoring ; Welfare ; Unemployment benefits ; Labor market flexibility ; Upgrading



29 p, 443.8 KB

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