We analyze the effect of low-skill workers offshoring on the welfare of the economy. In the context of a matching model … unemployment benefits to compensate for the negative welfare effects of offshoring, it would only take a small reduction in the … with different possible equilibria, we discuss two policies that could potentially outweigh the negative welfare effects of …

This paper studies the welfare and policy implications of globalization when risk averse workers face the risk of … welfare of workers but could reduce social welfare as well. Both unemployment benefits and severance payments can protect … workers against labor income risk, but the latter enhances welfare more if job destruction is the source of unemployment. When …