Offshoring, Welfare, and Flexibility in the Context of US Protectionism
Author
Agnese, Pablo
Hromcová, Jana
Publication date
2021ISSN
1743-517X
Abstract
We reexamine the effects of offshoring in the US economy in the aftermath of the 2008 crisis. We use a matching model with endogenous adjustment of educational skills while distinguishing between offshoring of high and low-skill activities. We first show that offshoring leads to a restructuring of the economy through a change in the wage premium where overall welfare is improved. Moreover, in a policy exercise, we show that, if offshoring were to be opposed by a protectionist agenda, the resulting welfare losses could be counterbalanced by increased labor flexibility.
Document Type
Article
Document version
Published version
Language
English
Subject (CDU)
33 - Economics. Economic science
Keywords
Deslocalització
Habilitats
Benestar
Prima salarial
Flexibilitat
Deslocalización
Habilidades
Bienestar
Prima salarial
Flexibilidad
Offshoring
Skills
Welfare
Wage premium
Flexibility
Pages
19
Publisher
Taylor & Francis
Collection
35; 4
Is part of
International Economic Journal
Citation
Agnese, Pablo; Hromcová, Jana. Offshoring, Welfare, and Flexibility in the Context of US Protectionism. International Economic Journal, 2021, 35(4), p. 391-410. Disponible en: <https://www.tandfonline.com/doi/full/10.1080/10168737.2021.1971281>. Fecha de acceso: 26 feb. 2024. DOI: 10.1080/10168737.2021.1971281
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