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 …

The subject of offshoring and productivity has not yet received the attention it deserves. Here I propose a simple …-series perspective. This framework is then used to assess the impact of offshoring on skill upgrading and the labor share. For both … should be interpreted with caution yet clearly suggest that offshoring can improve labor productivity in the Semiconductors …