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We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...
Persistent link: https://www.econbiz.de/10014049472
against lost household earnings by increasing labour supply. We find that both own and partner responses to the shock vary … worker effect' when their partner is exposed to the shock. By contrast, we find no such response for women, who do not … dissolution also differ according to the gender of those affected: for women below 45, but not men, exposure to the trade shock …
Persistent link: https://www.econbiz.de/10014351480
We build an equilibrium model of a small open economy with labor market frictions and imperfectly enforced regulations. Heterogeneous firms sort into the formal or informal sector. We estimate the model using data from Brazil, and use counterfactual simulations to understand how trade affects...
Persistent link: https://www.econbiz.de/10013250247
In this paper we study the effect of NAFTA on the responsiveness of Mexican economy to real exchange rate shocks. We argue that, by opening the U.S. and Canadian markets to Mexican goods, NAFTA made it easier for domestic producers to take advantage of the opportunities brought by the...
Persistent link: https://www.econbiz.de/10013155309
We model empirically the role of labor market institutions in affecting the response of inflation to labor market and …-country differences in inflation adjustment for the "sheltered" (non-trading) sector; the effects in the "exposed" (trading) sector are … the Phillips curve in both sectors. More active LM policies also reduce the persistence of inflation. However, but only in …
Persistent link: https://www.econbiz.de/10013075782
regime doesn't condition the validity of PPP which is more easily accepted in countries with high than low inflation …
Persistent link: https://www.econbiz.de/10013316947
In the last decades, international trade has increased between industrialised countries and between high- and low-wage countries. This important change has raised questions on how international trade affects the labour market. In this spirit, this paper aims to investigate the impact of...
Persistent link: https://www.econbiz.de/10013127724
Entrepreneurs who decide to enter an industry are faced with different levels of effective entry costs in different countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects the government incentive to impact on entry costs,...
Persistent link: https://www.econbiz.de/10013155605
We analyze the effect of immigrants' legal status on their consumption behavior using unique survey data that samples both documented and undocumented immigrants. To address the problem of sorting into legal status, we propose two alternative identification strategies as exogenous source of...
Persistent link: https://www.econbiz.de/10012987211
How does saving behavior of immigrants respond to changes in purchasing power parity between the source and host countries? We examine this question by building a theoretical model of joint return-migration and saving decisions of temporary migrants and then test its implications by using data...
Persistent link: https://www.econbiz.de/10012912788