We set up a two-country general equilibrium model, in which heterogeneous firms from one country (the source country … sharing, which results in aggregate unemployment. In this extended model, offshoring furthermore has non-monotonic effects on … unemployment and intra-group inequality among workers. The paper also offers a calibration exercise to quantify the effects of …

This paper studies the relationship between wage negotiations and the mode of foreign market penetration in a general … on how wages and unemployment rates adjust to economic integration. We distinguish between short-run effects for a given …

dimensions: Involuntary unemployment and income inequality between entrepreneurs and workers increase, and so does inequality …

fragmentation. This gives us a theoretical framework in which wage inequality and unemployment rates are co-determined and therefore … fragmentation. We also explore how preferences for fair wages and the size of unemployment benefits govern the employment effects of … outsourcing and critically assess the role of political intervention that aims to reduce unemployment benefits under …

This paper develops a model that incorporates workers’ fair wage preferences into a general equilibrium framework with … profits, involuntary unemployment and within-group wage inequality in a unified framework. We use this model to investigate … simultaneous increase of average profits and involuntary unemployment as well as a surge in within-group wage inequality. …