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We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …
Persistent link: https://www.econbiz.de/10005714784
Consistent with two models of imperfect competition in the labor market, the efficient bargaining model and the monopsony model, we provide two extensions of a microeconomic version of Hall's framework for estimating price-cost margins. We show that both product and labor market imperfections...
Persistent link: https://www.econbiz.de/10005774942
As it becomes cheaper to copy and share digital content, vendors are turning to technical protections such as encryption. We argue that if protection is nevertheless imperfect, this transition will generally lower the prices of content relative to perfect legal enforcement. However, the effect...
Persistent link: https://www.econbiz.de/10005778863
from trade under Bertrand and Cournot oligopoly. Firms differentiate their products to mitigate competition, but only if …
Persistent link: https://www.econbiz.de/10011196773
This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...
Persistent link: https://www.econbiz.de/10010723400
Centralized wage-setting institutions compress relative wages. Motivated by this fact, we investigate the effects of centralized wage setting on the industry distribution of employment. We examine Sweden's industry distribution from 1960 to 1994 and compare it to the U.S. distribution over the...
Persistent link: https://www.econbiz.de/10005828555
This study examines two innovative efforts to provide union services to workers with the aid of low cost Internet communication: the AFL-CIO's Working America, a "community affiliate" that enrolled 2 million workers from 2004 to 2007 by canvassing them at their homes and over the Internet...
Persistent link: https://www.econbiz.de/10005830169
The inability to measure the opportunity cost of labor has plagued analyses of firm-level compensation policies for many years. Using a newly constructed data set of French workers and firms, we estimate the opportunity cost of the employees' time based on a measure of the person-effect in the...
Persistent link: https://www.econbiz.de/10005830939
This paper presents new evidence on the effects of changing union membership on trends in wage dispersion in the U.S. labor market. I use data from the mid-1970s and early 1990s to compare union membership rates for workers in different deciles of the wage distribution, and to calculate the...
Persistent link: https://www.econbiz.de/10005830960
While many jurisdictions ban teacher strikes on the assumption that they harm students, there is surprisingly little research on this question. The majority of existing studies make cross section comparisons of students who do or do not experience a strike, and report that strikes do not affect...
Persistent link: https://www.econbiz.de/10008855212