This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …

abroad, and where outsourcing is substitutable for domestic low-ability labor. Our results show that the incentives for the … unemployment also constitutes an incentive to implement a tax on outsourcing. Without a direct instrument for taxing outsourcing …, the government may reduce the amount of resources spent on outsourcing by increased provision of the public input good …

"This paper investigates empirically the link between international outsourcing and the skill structure of labour … demand in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import … factor demands, our main results show that international outsourcing has had a strong negative impact on the demand for …