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This paper provides new evidence on how offshoring shifts relative labor demand for tasks at the industry level. A … novel theoretical mechanism, based on sorting of heterogeneous workers into occupations with task dependent offshoring cost …, guides estimation. Cost shares of tasks are linked to offshoring in a panel estimation using German data for 1998-2007. It is …
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This paper provides a labour supply explanation to the observation that in Germany employment changes are asymmetric …
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mark-up stronger than in Germany in the wake of skill-biased technological change. The reason is that the unskilled … training and education costs in the USA for unskilled employees and unemployed. In Germany, the lower skill wage mark-up leads …
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The specification of the world closure, i.e. the way of closing the domestic economy model by incorporating the external sector, is a crucial component for those models in which production and consumption is not specified endogenously for all countries. This paper looks explicitly at the...
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This paper demonstrates that insiders can erect barriers to entry and skim rents by sinking costs in human capital when labour markets are otherwise perfectly contestable. The sunk costs nature of human capital investments may result from the need to satisfy ever increasing specialised skill...
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