This paper analyses theoretically and empirically how employment subsidies should be targeted. We contrast measures … efficiency" (AWE). Thereby we can identify policies that (a)improve employment and welfare, (b)do not raise earnings inequality …

-savings" effect they may leave unaffected, or even increase, total native employment of less skilled workers. Our model also predicts … positive net effect on native employment while offshoring has no effect on it. We also find some evidence that offshoring has …

innovation output as measured by patent applications. We first estimate a long-run cointegration relation using recently … analyse the impulse response of new ideas to a shock to R&D or to a shock to innovation by estimating an error correction … mechanism. We find that internationally generated ideas have a very significant impact in helping innovation in a country. As a …