Low-skill offshoring and welfare compensation policies
Autor/a
Agnese, Pablo
Hromcová, Jana
Fecha de publicación
2016ISSN
0264-9993
Resumen
We analyze the effects of low-skill offshoring on welfare. In the context of a matching model with different possible equilibria we discuss three alternative policies that could potentially outweigh the negative welfare effects of offshoring, namely, a change of the unemployment benefits, labor market flexibility, and a progressive tax structure. Our calibrations for the German economy suggest that increased flexibility can bring low-skill workers to pre-offshoring welfare levels, something that cannot be accomplished by meddling with the unemployment benefits scheme or a more progressive tax structure. 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 labor market flexibility and upgrading by education as best therapies for offshoring.
Tipo de documento
Artículo
Versión del documento
Versión publicada
Lengua
Inglés
Materias (CDU)
33 - Economía
Palabras clave
Economia
Economía
Economy
Páginas
18
Publicado por
Elsevier
Colección
52;Part B
Publicado en
Economic Modelling
Citación
Agnese, Pablo; Hromcová, Jana. Low-skill offshoring and welfare compensation policies. Economic Modelling, 2016, 52(Part B), p. 408-426. Disponible en: <https://www.sciencedirect.com/science/article/abs/pii/S0264999315002692>. Fecha de acceso: 26 feb. 2024. DOI: 10.1016/j.econmod.2015.09.022
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Derechos
© 2015 Elsevier B.V. All rights reserved.