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Persistent link: https://www.econbiz.de/10003620170
An important issue in public policy debates is the effect of international migration on welfare in source and host countries. We address this issue by constructing a general equilibrium model of a two-class source or host country. Each country produces many traded and non-traded goods, uses...
Persistent link: https://www.econbiz.de/10011541114
We study how two distinct forms of globalisation, trade cost reductions and opening up of trade in previously shielded … aggregate welfare are affected differently by the two types of globalisation. Trade cost reductions in open sectors always lead …
Persistent link: https://www.econbiz.de/10009011927
The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age-old conventional wisdom on its head. This paper demonstrates that this apparently paradoxical result is perfectly plausible in a competitive general equilibrium production...
Persistent link: https://www.econbiz.de/10012162484
This paper analyses the impact of immigration on the welfare of the native population in an economy that consists of skilled and unskilled workers. Due to unionisation, the wage rate in the market for unskilled labour is above the competitive level. For a given skill endowment of the native...
Persistent link: https://www.econbiz.de/10009781709
We analyze whether different learning abilities of firms with respect to general equilibrium effects lead to different levels of unemployment. We consider a general equilibrium model where firms in one sector compete à la Cournot and a real wage rigidity leads to unemployment. If firms consider...
Persistent link: https://www.econbiz.de/10009781719
-offshoring firms emerges in our model because, in contrast to textbook models of trade with heterogeneous producers, we allow firms to …
Persistent link: https://www.econbiz.de/10011611197
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 … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade …
Persistent link: https://www.econbiz.de/10003923568
Persistent link: https://www.econbiz.de/10008906342
We present a dynamic quantitative trade and migration model that incorporates downward nominal wage rigidities and show …
Persistent link: https://www.econbiz.de/10013384886