Keuschnigg, Christian; Ribi, Evelyn - 2009
Outsourcing of labor intensive activities challenges the welfare state and undermines the protection of low … results are: (i) Social insurance props up wages, leading to more outsourcing and unskilled unemployment. (ii) Redistribution … from the skilled to the working poor acts as a wage subsidy to unskilled workers, thereby reducing gross wages, outsourcing …