We analyze the effect of low-skill workers offshoring on the welfare of the economy. In the context of a matching model … offshoring, namely, an increase of the unemployment benefits and the flexibilization of the labor market. Our results suggest … unemployment benefits to compensate for the negative welfare effects of offshoring, it would only take a small reduction in the …

First moves towards a real understanding of offshoring date back to very recent times. In particular for Japan, the … studies conducted so far focus alone on the productivity effects of offshoring at the firm level. Here I carry out the …-2005. Moreover, I consider all industries within the economy and take account of both services and materials offshoring. My results …