Showing 1 - 10 of 72
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10009278130
We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because the fixed cost of …
Persistent link: https://www.econbiz.de/10005766050
equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced …. I also explore trade policy implications and compare offshoring to migration. …
Persistent link: https://www.econbiz.de/10005181377
Contributing to a social cause can be an important driver for workers in the public and non-profit sector as well as in firms that engage in Corporate Philanthropy or other Corporate Social Responsibility policies. This paper compares the effectiveness of social incentives - that take the form...
Persistent link: https://www.econbiz.de/10010764293
We examine the role of CSR as a mechanism for private provision of public goods. We argue that corporations are using … CSR to signal high product quality and demonstrate that signaling gives rise to an excessive level of contributions that … offered to corporations engaged in CSR activities. …
Persistent link: https://www.econbiz.de/10010948835
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we...
Persistent link: https://www.econbiz.de/10009391722
This paper finds a link between the sharp drop in U.S. manufacturing employment beginning in 2001 and a change in U.S. trade policy that eliminated potential tariff increases on Chinese imports. Industries where the threat of tariff hikes declines the most experience more severe employment...
Persistent link: https://www.econbiz.de/10010734330
This paper studies the welfare and policy implications of globalization when risk averse workers face the risk of unemployment. If the jobs performed by domestic workers can be easily substituted by imports, then globalization reduces wages and increases unemployment. In this situation, in the...
Persistent link: https://www.econbiz.de/10011163064
faster task offshoring in sectors exposed to lower labour-market tightness. We discuss policy implications of these findings. …
Persistent link: https://www.econbiz.de/10011099759
Recent empirical studies have been searching for evidence on and driving forces for offshoring. Frequently, this has … competing with the role of multilateral trade resistance. Our results support evidence for offshoring activities across Europe …
Persistent link: https://www.econbiz.de/10010548148