Showing 1 - 10 of 213
How does trade liberalization affect wages? This is the first paper to consider in theory and data how the impact of … final and intermediate input tariff cuts on workers’ wages varies with the global engagement of their firm. Our model … predicts that a fall in output tariffs lowers wages at import-competing firms, but boosts wages at exporting firms. Similarly …
Persistent link: https://www.econbiz.de/10005666626
We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the relative return to skilled labour. As firms get access to a larger market, they have incentives to choose a more skill-intensive technology because a lowering of variable costs...
Persistent link: https://www.econbiz.de/10005791636
wages being earned by workers employed in the industry, controlling for worker characteristics and geographic variables. The … suggesting that reductions in trade barriers benefited the unskilled in terms of an increase in wages. …
Persistent link: https://www.econbiz.de/10005656332
household labour income and poverty in Brazil. We first estimate the extent of price transmission from world markets to eleven … then simultaneously estimate the impact that changes in domestic sugar prices have on regional wages and employment … experience larger income gains due to higher wages, whereas households at the bottom of the distribution experience larger income …
Persistent link: https://www.econbiz.de/10005667051
A firm's productivity depends on how production is organized given the level of demand for its product. To capture this mechanism, we develop a theory of an economy where firms with heterogeneous demands use labor and knowledge to produce. Entrepreneurs decide the number of layers of management...
Persistent link: https://www.econbiz.de/10009246600
Many new exporters give up exporting very shortly, despite substantial entry costs; others shoot up foreign sales and expand to new destinations. We develop a model based on experimentation to rationalize these and other dynamic patterns of exporting firms. We posit that individual export...
Persistent link: https://www.econbiz.de/10008692316
This paper empirically tests the link between trade openness and enterprise restructuring in Bulgaria. It belongs to a recent line of work in the empirical trade literature that investigates the effects of trade policy on firm behaviour. The trade liberalization following the 1991 economic...
Persistent link: https://www.econbiz.de/10005662077
We examine interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving imports of 22 OECD countries vis-à-vis 69 exporters. This points to...
Persistent link: https://www.econbiz.de/10005662166
This paper investigates the impacts of progressive trade openness, technological externalities, and heterogeneity of individuals on the formation of entrepreneurship in a two-country occupation choice model. We show that trade opening gives rise to a non-monotonic process of international...
Persistent link: https://www.econbiz.de/10005662268
Melitz (2003) demonstrates that greater trade openness raises industry productivity via a selection effect and via a production re-allocation effect. Our comment points out that the set-up assumed in the Melitz model displays a trade off between static and dynamic efficiency gains. That is,...
Persistent link: https://www.econbiz.de/10005662315