chapter compares the impact of international trade in intermediate inputs (offshoring) on wage inequality in two distinct but … similar frameworks. In the first framework the profitability of offshoring is based on increasing returns to scale on the task …-level, whereas the second framework relies on differences in relative factor endowments of the two countries involved in offshoring …

This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically … competitive labour markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting … labour market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for …

World Input Output Database (WIOD). We also explore the consequences of labor mobility across local labor markets in Germany …

World Input Output Database (WIOD). We also explore the consequences of labor mobility across local labor markets in Germany …

domestic products (GDPs) account for 36 percent of world GDP and whose mutual trade accounts for approximately 24 percent of … world trade. As for most proposed free trade agreements (FTAs), trade economists have provided ex ante computable general …