This paper analyzes the issues of immigration and outsourcing in a general-equilibrium model of international factor … mobility. In our model, legal immigration is controlled through a quota, while outsourcing is determined both by the firms (in … response to market conditions) and through policy-imposed barriers. A loosening of the immigration quota reduces outsourcing …

With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …

, but not necessarily formal-to-informal outsourcing, and, in response, the developed nation wage can fall. Productivity … improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …

Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who export jobs … through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets … oligopolistic context. We find that while an outsourcing tax favors domestic workers by causing firms to switch to a greater use of …

, but not necessarily formal-to-informal outsourcing, and, in response, the developed nation wage can fall. Productivity … improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …