productive firms in this setting are not only larger and make higher profits but they also have to pay higher wages due to rent … operating profits and hence have to pay higher wages than non-exporters. This exporter wage premium provides a source for losses … from trade and, all other things equal, makes a negative employment effect of trade more likely. Furthermore, it …

pay wages that are positively linked to their profits by a rent-sharing mechanism. Offshoring involves fixed and task … margin, with domestic employment shifted from the newly offshoring firms in the middle of the productivity distribution to … firms at the tails of this distribution, paying either very low or very high wages. We also study how the reallocation of …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment …

, leading to a link between a firm's operating profits and wages of workers employed by this firm. We estimate the parameters of … aggregate employment …