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This paper contributes to the debate on the effects of trade versus technological change on wage differentials. We propose an explanation of the stylized facts which is based on interactions between openness and technological change because of labor market institutions and government...
Persistent link: https://www.econbiz.de/10011339677
oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be … desirable and the usual profit-shifting objectives of an export subsidy are mitigated, perhaps completely, because it might lead … outsourcing. Further, if export subsidies are not possible due to WTO regulations, it is optimal to subsidize rather than to tax …
Persistent link: https://www.econbiz.de/10003227215
Defensive innovations in developed countries can explain the empirical phenomenon that openness towards trade with less-developed countries does not necessarily induce a substantial increase in the wage differential and trade volumes. Building on step-by-step innovations as introduced by Aghion...
Persistent link: https://www.econbiz.de/10011406885
The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be offshored. Our analysis relates to recent theoretical contributions arguing that there is only a loose relationship between the suitability of a task for offshoring and the...
Persistent link: https://www.econbiz.de/10003944285
In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements of offshoring: that it involves intermediate inputs for...
Persistent link: https://www.econbiz.de/10011452576
This paper analyzes the issues of immigration and outsourcing in a general-equilibrium model of international factor mobility. In our model, legal immigration is controlled through a quota, while outsourcing is determined both by the firms (in response to market conditions) and through...
Persistent link: https://www.econbiz.de/10003039642
Competition in the labor market theoretically leads to higher wages, yet empirical evidence to substantiate it, particularly in developing countries, has been sparse. Our study delves into the impact of increased competition in the labor market on workers' wages using a panel dataset from...
Persistent link: https://www.econbiz.de/10015046199
This paper uses repeated cross-section data ISSP data from 1989, 1997 and 2005 to consider movements in job quality. It is first underlined that not having a job when you want one is a major source of low well-being. Second, job values have remained fairly stable over time, although workers seem...
Persistent link: https://www.econbiz.de/10003794111
Worksharing is considered by many as a promising public policy to reduce unemployment. In this paper we present a review of the most pertinent theoretical and empirical contributions to the literature on worksharing. In addition, we also provide new empirical evidence on this issue, by a cross...
Persistent link: https://www.econbiz.de/10011336855
Does interacting product and labor market regulation alter the impact of immigration on wages of competing native workers? Focusing on the large, sudden and unanticipated wave of migration from East to West Germany after German reunification and allowing for endogenous immigration, we compare...
Persistent link: https://www.econbiz.de/10010230515