abstract: 'The paper investigates the consequences of outsourcing of labor

  intensive activities to low-wage economies. This trend challenges the

  two basic functions of the welfare state, redistribution and social

  insurance when private unemployment insurance markets are missing. The

  main results are: (i) outsourcing raises unemployment and labor income

  risk of unskilled workers; (ii) it increases inequality between high-

  and low-income groups; and (iii) the gains from outsourcing can be made

  Pareto improving by using a redistributive linear income tax if

  redistribution is initially not too large. We finally derive the welfare

  optimal redistribution and unemployment insurance policies. (C) 2009

  Elsevier B.V. All rights reserved.'
affiliation: 'Keuschnigg, C (Corresponding Author), Univ St Gallen, IFF HSG, Varnbuelstr
  19, CH-9000 St Gallen, Switzerland.

  Keuschnigg, Christian; Ribi, Evelyn, Univ St Gallen, IFF HSG, CH-9000 St Gallen,
  Switzerland.

  Keuschnigg, Christian, CEPR, London, England.

  Keuschnigg, Christian, CESifo, Munich, Germany.'
author: Keuschnigg, Christian and Ribi, Evelyn
author-email: 'christian.keuschnigg@unisg.ch

  evelyn.ribi@unisg.ch'
author_list:
- family: Keuschnigg
  given: Christian
- family: Ribi
  given: Evelyn
da: '2023-09-28'
doi: 10.1016/j.jinteco.2009.02.001
files: []
issn: 0022-1996
journal: JOURNAL OF INTERNATIONAL ECONOMICS
keywords: Outsourcing; Unemployment; Social insurance; Redistribution
keywords-plus: 'TRADE LIBERALIZATION; RESERVATION WAGES; SIZE DISTRIBUTION; INSURANCE;

  SEARCH; EMPLOYMENT; GLOBALIZATION; TAXATION; IMPACT; LEVEL'
language: English
month: JUN
number: '1'
number-of-cited-references: '44'
orcid-numbers: Keuschnigg, Christian/0000-0003-4924-7859
pages: 168-176
papis_id: 5fb3e9ff8bf9df54c3da9b0419baaab0
ref: Keuschnigg2009outsourcingunemploym
times-cited: '25'
title: Outsourcing, unemployment and welfare policy
type: article
unique-id: WOS:000266845900015
usage-count-last-180-days: '1'
usage-count-since-2013: '26'
volume: '78'
web-of-science-categories: Economics
year: '2009'