More accurately, permetherin is a contact insecticide. It is sprayed on clothing and allowed to dry before wearing. It is inactivated by contact with skin, so there is no point in applying it to skin.
DEET acts as a smell "blinding" agent--it blocks the chemical sensors used by mosquitoes to home in on you. DEET has been established to both be effective and safe when used properly.
Abstract:
http://content.nejm.org/cgi/content...4982956791_6411&FIRSTINDEX=0&journalcode=nejm
Full article:
http://content.nejm.org/cgi/content...IRSTINDEX=0&journalcode=nejm&journalcode=nejm
Note comments on safety near the end.
Excerpt:
"Despite the substantial attention paid by the lay press every year to
the safety of DEET, this repellent has been subjected to more
scientific and toxicologic scrutiny than any other repellent
substance. The extensive accumulated toxicologic data on DEET have
been reviewed elsewhere. DEET has a remarkable safety profile after 40
years of use and nearly 8 billion human applications. Fewer than 50
cases of serious toxic effects have been documented in the medical
literature since 1960, and three quarters of them resolved without
sequelae. Many of these cases of toxic effects involved long-term,
heavy, frequent, or whole-body application of DEET. No correlation has
been found between the concentration of DEET used and the risk of
toxic effects. As part of the Reregistration Eligibility Decision on
DEET, released in 1998, the Environmental Protection Agency reviewed
the accumulated data on the toxicity of DEET and concluded that
"normal use of DEET does not present a health concern to the general
U.S. population." When applied with common sense, DEET-based
repellents can be expected to provide a safe as well as a long-lasting
repellent effect. Until a better repellent becomes available,
DEET-based repellents remain the gold standard of protection under
circumstances in which it is crucial to be protected against arthropod
bites that might transmit disease."
Doug