Outsourcing, Unemployment and Welfare Policy

摘要: Outsourcing of labor intensive activities challenges the welfare state and undermines protection low-skilled workers. The stylized facts are that profits concentrated among high-skilled, involuntary unemployment is mostly low-skilled, private insurance missing. This paper analyzes effectiveness redistribution policies when heterogeneous firms can outsource components to low-wage economies. main results are: (i) Social props up wages, leading more outsourcing unskilled unemployment. (ii) Redistribution from skilled working poor acts as a wage subsidy workers, thereby reducing gross (iii) A trend outsourcing, induced by lower transport costs imported components, depresses raises unemployment, boosts profits. resulting polarization society increased income risk workers emphasize social gains thus call for active role in open