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Firm Dynamics and Residual Inequality in Open Economies
Felbermayr, Gabriel J.; Impullitti, Giammario; Prat, Julien - CESifo - 2014
Increasing wage inequality between similar workers plays an important role for overall inequality trends in … trade with heterogeneous firms and homogeneous workers. Wage inequality across and within firms results from their different … Hartz labor market reforms account for the sharp increase in residual inequality observed in the data. By contrast …
Persistent link: https://www.econbiz.de/10010877715
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Capacity Constraining Labor Market Frictions in a Global Economy
Holzner, Christian; Larch, Mario - CESifo - 2011
Convex vacancy creation costs shape firms’ responses to trade liberalization. They induce capacity constraints by increasing firms’ cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...
Persistent link: https://www.econbiz.de/10009320777
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Unemployment in an Interdependent World
Felbermayr, Gabriel J.; Larch, Mario; Lechthaler, Wolfgang - CESifo - 2009
We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...
Persistent link: https://www.econbiz.de/10008583684
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The Distributional Consequences of Supply-Side Reforms in General Equilibrium
Angelopoulos, Konstantinos; Fernandez, Bernardo X.; … - CESifo - 2011
can thus increase inequality in the long-run. Depending on the elasticity of substitution between capital and unskilled … show that including the transition period in the welfare evaluation lowers the inequality effects of capital tax reduc …
Persistent link: https://www.econbiz.de/10009144878
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Comparative Advantage and Skill-Specific Unemployment
Larch, Mario; Lechthaler, Wolfgang - CESifo - 2009
real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between …
Persistent link: https://www.econbiz.de/10005013939
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Industry-Level Labour Demand Elasticities Across the Eurozone: Will There Be Any Gain After the Pain of Internal Devaluation?
Adam, Antonis; Moutos, Thomas - CESifo - 2014
In this paper we estimate disaggregated labour demand equations using panel data involving observations across time (1970-2007) for twenty-three industries across eleven euro area countries. By using the EU KLEMS database, which provides data across countries, we provide industry-by-industry...
Persistent link: https://www.econbiz.de/10010790173
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Incomplete Specialization and Offshoring across Europe
Frensch, Richard; Hanousek, Jan; Kocenda, Evžen - CESifo - 2012
Recent empirical studies have been searching for evidence on and driving forces for offshoring. Frequently, this has been done by analyzing gross trade flows related to offshore activities using gravity equations augmented by ad hoc measures of supply-side country differences. This paper...
Persistent link: https://www.econbiz.de/10010548148
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International Trade and Unemployment: A Quantitative Framework
Heid, Benedikt; Larch, Mario - CESifo - 2012
Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor...
Persistent link: https://www.econbiz.de/10010877646
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Trade Unions Go Global!
Donado, Alejandro; Wälde, Klaus - CESifo - 2008
Worker movements played a crucial role in making workplaces safer. Workplace safety is costly for firms but increases labour supply. A laissez-faire approach leaving safety of workplaces unknown is suboptimal. Safety standards set by better-informed trade unions are output and welfare...
Persistent link: https://www.econbiz.de/10005765941
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Labor Reallocation in Response to Trade Reform
Filho, Naércio Aquino Menezes; Muendler, Marc-Andreas - CESifo - 2007
Tracking individual workers across employers and industries after Brazil's trade liberalization in the 1990s shows that foreign import penetration and tariff reductions trigger worker displacements but that neither comparative-advantage industries nor exporters absorb displaced workers for...
Persistent link: https://www.econbiz.de/10005094453