BANDYOPADHYAY, SUBHAYU; WALL, HOWARD J. - In: Economics and Politics 19 (2007) 2, pp. 219-234
We analyze the effects of outsourcing in the presence of a minimum wage by presenting a general-equilibrium model with an oligopolistic export sector and a competitive import-competing sector. An outsourcing tax is politically popular because it switches jobs to unemployed natives. It is also...