Outsourcing, unemployment and welfare policy

"The paper investigates the consequences of outsourcing of labor intensive activities to low-wage economies. This trend challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance markets are missing. The main results are: (i)...

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Main Authors: Keuschnigg, Christian, Ribi, Evelyn
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Munich 2008
CESifo
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19180797124919089799-outsourcing,-unemployment-and-.htm
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author Keuschnigg, Christian
Ribi, Evelyn
author_facet Keuschnigg, Christian
Ribi, Evelyn
collection Library items
description "The paper investigates the consequences of outsourcing of labor intensive activities to low-wage economies. This trend challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii) it increases inequality among high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto improving by using a redistributive linear income tax if redistribution is initially not too large. We finally derive the welfare optimal redistribution and unemployment insurance policies."
format TEXT
id 19180797124919089799_ec5cd874fee94e0db63c8561e55fcfd2
institution ETUI-European Trade Union Institute
is_hierarchy_id 19180797124919089799_ec5cd874fee94e0db63c8561e55fcfd2
is_hierarchy_title Outsourcing, unemployment and welfare policy
language English
physical 26 p.
Digital
publishDate 2008
publisher Munich
CESifo
spellingShingle Keuschnigg, Christian
Ribi, Evelyn
outsourcing
unemployment
unemployment benefit
welfare economics
Outsourcing, unemployment and welfare policy
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=117170293535
title Outsourcing, unemployment and welfare policy
topic outsourcing
unemployment
unemployment benefit
welfare economics
url https://www.labourline.org/KENTIKA-19180797124919089799-outsourcing,-unemployment-and-.htm