This paper explores the ramifications of international outsourcing on unemployment, income distribution and welfare …-specific unemployment, it shows that the effects of outsourcing on employment, income-distribution and welfare depend on the sector in which … the outsourcing occurs, whereby sectoral factor intensities, unemployment-outsourcing response and the dynamic stability …

model to explain the natural rate of unemployment and non-wage employment costs, to show the impact of reform on the short … (unemployment rises and then falls, while wages move in the opposite way); that the long run gains outweigh the short run costs; and …