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regions, workers demand higher wages there, imposing thereby higher labour costs on firms. We analyze this trade-off and ask …
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In this paper we argue that the surge in world trade over the two decades preceding the global downturn of 2008-09 can be partly explained by the export-magnification effect of offshoring. In a general equilibrium model with heterogeneous firms we show analytically that a fall in variable...
Persistent link: https://www.econbiz.de/10009152018
raise the aggregate efficiency in the differentiated good sector. As a result, real wages and aggregate welfare …
Persistent link: https://www.econbiz.de/10003951208
The retail sectors in many industrialized countries have experienced a large increase in concentration and the appearance of so-called "retail deserts", areas of low retail provision. This study addresses the role of international trade in this process. The analysis shows that by raising product...
Persistent link: https://www.econbiz.de/10003525568
In this paper, I investigate the welfare effects that developed countries experience after productivity improvements occur in their emerging trading partners, using a two-country model featuring pro-competitive effects of trade and asymmetries in technology. I model the technology advantage of...
Persistent link: https://www.econbiz.de/10013034576
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firm-level productivity differentials. We build a model where firms can choose between efficiency wages with endogenous … effort and competitive wages, and show that it can replicate those facts. Using Japanese microeconomic data, we find support … for the existence of efficiency wages in one group of firms and competitive wages in the other group. Based on those …
Persistent link: https://www.econbiz.de/10012924119