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question we propose a theory of the assignment of heterogeneous agents into hierarchical teams, where less skilled agents … globalization. Globalization leads to better matches for all southern workers but only for the best northern workers. As a result …, we show that globalization increases wage inequality in the South but not necessarily in the North. We also study how …
Persistent link: https://www.econbiz.de/10013323444
This paper develops a new framework for examining the distributional consequences of trade liberalization that is consistent with increasing inequality in every country, growth in residual wage inequality, rising unemployment, and reallocation within and between industries. While the opening of...
Persistent link: https://www.econbiz.de/10012758160
Globalization has been blamed for rising inequality in rich and poor countries. Yet the views of many protagonists in … empirical literature on the relationship between globalization and wage inequality. While the initial analysis that started in … cumulative effect has been modest, and that globalization does not explain the preponderance of the rise in wage inequality …
Persistent link: https://www.econbiz.de/10012977276
Arguably the most important development in recent decades in US factor markets is the decline in the relative wage of the unskilled. By contrast, in Europe it is undoubtedly the rise and persistence of unemployment. Technology has been identified as a key reason for the rising US wage...
Persistent link: https://www.econbiz.de/10013226172
There is considerable debate over whether international trade has contributed to the declining economic fortunes of … and how these responses, in turn, are transmitted to the labor market. In previous work, we have argued that outsourcing … input purchases from the Census of Manufactures. We construct industry-by-industry estimates of outsourcing for the period …
Persistent link: https://www.econbiz.de/10013230978
We identify “first generation” statistics to measure offshoring as the share of imported intermediate inputs in costs, along with O*NET data to measure the tradability of tasks. These data were used to measure the shifts in relative labor demand and relative wages due to offshoring. A...
Persistent link: https://www.econbiz.de/10012964907
We propose a theory that rising globalization and rising wage inequality are related because trade liberalization …. This mechanism works regardless of factor endowment differences, so we provide an explanation for why globalization and …
Persistent link: https://www.econbiz.de/10013118253
A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different … (2011), CVW hereafter, we have developed a simple theory of trade with sequential production to shed light on how global … top of these chains. This suggests that the consequences of globalization on wage inequality may be very different in …
Persistent link: https://www.econbiz.de/10013107972
We develop a neoclassical trade model with heterogeneous factors of production. We consider a world with two factors, labor and "managers", each with a distribution of ability levels. Production combines a manager of some type with a group of workers. The output of a unit depends on the types of...
Persistent link: https://www.econbiz.de/10013074651
Chinese imports and exports grew rapidly during the first three decades of the twentieth century as China opened up to global trade. Using a new data set on the factor-intensity of traded goods at the industry level, we show that Chinese exports became more unskilled-intensive and imports became...
Persistent link: https://www.econbiz.de/10013148630