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Trade, Offshoring, and the Invisible Handshake

Karabay, Bilgehan - 2009

integration of commodity markets (i.e., free trade) and international integration of factor markets (i.e., offshoring). In a two …-country, two-good, two-factor model we show that free trade and offshoring have opposite effects on rich-country workers. Free … trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while …

Persistent link: https://www.econbiz.de/10012463601

Global Value Chains and Labor Standards : The Race-to-the-Bottom Problem

Im, Hye-jun; McLaren, John - National Bureau of Economic Research - 2023

We ask how globalization affects a government's incentives to set labor standards for its workers. In a stylized equilibrium model of global value chains, we find two contrasting results. First, each country chooses stricter labor standards with globalization than it would under autarky, because...

Persistent link: https://www.econbiz.de/10014322750

Foreign Direct Investment, Global Value Chains, and Labor Rights : No Race-to-the-Bottom?

Im, Hye-jun; McLaren, John - National Bureau of Economic Research - 2023

In a stylized model of multinational firms choosing host locations for their global value chains, host-country governments choose the strength of collective-bargaining rights that allow their workers to receive a share of the resulting quasi-rents. Each government must trade off the direct...

Persistent link: https://www.econbiz.de/10014322751

Looking for Local Labor Market Effects of NAFTA

McLaren, John - 2010

Using US Census data for 1990-2000, we estimate effects of NAFTA on US wages. We look for effects of the agreement by industry and by geography, measuring each industry's vulnerability to Mexican imports, and each locality's dependance on vulnerable industries. We find evidence of both effects,...

Persistent link: https://www.econbiz.de/10012462122

Some Simple Analytics of Trade and Labor Mobility

Chaudhuri, Shubham - 2007

We study a simple, tractable model of labor adjustment in a trade model that allows us to analyze the economy's dynamic response to trade liberalization. Since it is a neoclassical market-clearing model, we can use duality techniques to study the equilibrium, and despite its simplicity a rich...

Persistent link: https://www.econbiz.de/10012465184

Trade Shocks and Labor Adjustment : Theory

Cameron, Stephen - 2007

We construct a dynamic, stochastic rational expectations model of labor reallocation within a trade model that is designed so that its key parameters can be estimated for trade policy analysis. A key feature is the presence of time-varying idiosyncratic moving costs faced by workers. As a...

Persistent link: https://www.econbiz.de/10012465185

Recent Findings on Trade and Inequality

Harrison, Ann - 2010

) income inequality. These include within-industry effects due to heterogeneous firms; effects of offshoring of tasks; effects …

Persistent link: https://www.econbiz.de/10012462231

Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility

Artuç, Erhan - 2012

A number of authors have argued that a worker's occupation of employment is at least as important as the worker's industry of employment in determining whether the worker will be hurt or helped by international trade. We investigate the role of occupational mobility on the effects of trade...

Persistent link: https://www.econbiz.de/10012460157