, and on the economy-wide unemployment rate. A reduction in the offshoring cost affects intrafirm and intrasectoral … economy-wide unemployment rate are the elasticity of substitution between inputs and the elasticity of demand for … cost of offshoring affects jobs and unemployment. We also show that the implications of a reduction in the cost of trading …

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two … sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment … real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between …

dimensions: Involuntary unemployment and income inequality between entrepreneurs and workers increase, and so does inequality …

This paper develops a model that incorporates workers’ fair wage preferences into a general equilibrium framework with … profits, involuntary unemployment and within-group wage inequality in a unified framework. We use this model to investigate … simultaneous increase of average profits and involuntary unemployment as well as a surge in within-group wage inequality. …

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …