The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...

This paper explores the role of government policies in a situation where the wage gap between high-skilled and low-skilled workers is widening due to increasing foreign competition in the manufacturing of low-skilled intensive goods. A two-period, two-sector general equilibrium model of a small...

Zu den zentralen Diskussionsthemen und Problemfeldern deutscher Wirtschafts-, Sozial- und Finanzpolitik gehören seit langem Fragen sozialer Sicherung wie auch die Situation und Entwicklung auf dem Arbeitsmarkt. Zwischen beiden Bereichen bestehen vielfältige Beziehungen, die außerordentlich...

This paper provides first firm-level evidence of the links between income inequality and the patterns of trade and export prices. We identify a theoretical mechanism behind these links, which suggests that a more unequal income distribution leads to higher average prices. We test the theory...