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)...

We set up a two-country general equilibrium model, in which heterogeneous firms from one country (the source country) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the impact on welfare in the source country can be positive or...

The present paper investigates the impact of international trade on individual labour market outcomes in the German service sector for the period 1995-2006. Combiningmicro-level data from the German Socio-Economic Panel (SOEP) and industry-level trade data from input-output tables, we examine...

This paper studies the impact of international trade on individual labour market outcomes in the German manufacturing sector for the period 1995-2006. Combining micro-level data from the German Socioeconomic Panel and industry-level trade data from input-output tables, we examine the impacts on...

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...

The paper compares the impact of corporate taxation and social insurance on foreign direct investment (FDI) and unemployment. Four main results are derived: (i) the optimal size of the welfare state depends on the degree of risk-aversion and the unemployment rate as a measure of labor income...

Many countries use centralized exit exams as a governance devise of the school system. While abundant evidence suggests positive effects of central exams on achievement tests, previous research on university-bound students shows no effects on subsequent earnings. We suggest that labor-market...

Am 24. und 25. März 2006 fand an der Akademie für Politische Bildung Tutzing unter der Leitung von Dr. Wolfgang Quaisser und Karl-Heinz Willenborg die Tagung "Arbeitslosigkeit ohne Ende? Die Arbeitsmarkt- und Beschäftigungspolitik der neuen Bundesregierung in der Kontroverse" statt. Im...

Mit welchen Maßnahmen sollten die Auswirkungen der Wirtschaftskrise auf den Arbeitsmarkt abgefedert werden? Olaf Scholz, Bundesminister für Arbeit und Soziales, erläutert die Politik der Regierung, insbesondere den Einsatz von Kurzarbeit, und unterstreicht die Relevanz der...