employment opportunities for which they have comparative advantage. This framework yields a simple equation linking wage changes … offshoring) rather than those of rising market power, markups or deunionization, which themselves do not appear to play a major …

optimal taxation of capital and labor would raise employment by 4.02% and the labor share by 0.78 percentage points, and … employment by 1.14-1.96%, but in this case efficiency can be increased by imposing an additional automation tax to reduce the … workers, reducing employment below its socially optimal level. We additionally show that reducing labor taxes or combining …