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This paper develops a model that incorporates workers' fair wage preferences into a general equilibrium framework with monopolistic competition between heterogeneous firms à la Melitz (2003). By assuming that the wage considered to be fair by workers depends on the productivity and thus the...
Persistent link: https://www.econbiz.de/10013317452
from trade and, all other things equal, makes a negative employment effect of trade more likely. Furthermore, it …
Persistent link: https://www.econbiz.de/10010274385
fragmentation. We also explore how preferences for fair wages and the size of unemployment benefits govern the employment effects of …
Persistent link: https://www.econbiz.de/10010261371
and the offshoring of tasks. At the firm-level, exporting leads to higher wages and employment, while offshoring of … production tasks reduces the wages paid to unskilled workers as well as their domestic employment. At the aggregate level, trade … firms restrict employment to keep wages low, resulting in too many firms that are on average too small. Offshoring on the …
Persistent link: https://www.econbiz.de/10012052880