Effects of different reformatory policies have always been a pulsating concern for the researchers and policy makers. Considering this concern, this paper attempts to check various effects of reformatory policies such as labor market reform, tariff cut, change in subsidy, bureaucratic reform in...

This paper analyzes the labor market effects of offshoring in a high-wage home country and how these effects crucially depend on (1) job complexity and (2) the characteristics of the destination country. It thereby links several sources: rich administrative data on individuals and plants in the...

International trade has had some impact on relative industry wages, but cannot explain widening wage differentials by education, skill, or occupation. Likewise, the slow growth of average wages during the 1980s cannot be explained by international trade

We revisit Grossman and Rossi-Hansberg's (2008) famous result, that under certain conditions offshoring of low-skilled labor tasks raises the domestic wage for low-skilled workers. Our re-examination features a less benign environment where Rybczynski-type reallocation of factors to absorb...

We estimate the extent of factor bias in technical changes consistent with observed changes in skill premia. To control for the effects of expanded trade on wages we use a structural model with multiple regions and comparative static analysis. Two alternative biased technical-change stories...

Using firm level data on Italian manufacturing industry, we examine how trade activities are related to workforce composition and wages. We contribute to empirical research on these issues in three ways. First, we provide novel evidence that is consistent with multi-attribute models on firm...

This paper presents a dynamic general equilibrium model of trade between two advanced countries in which both innovation and skill acquisition rates are endogenously determined. The model offers a North-North (as opposed to a North-South) trade explanation for increasing relative wage...

In this paper we develop a North-South trade model in which the South produces food and the North produces both food and a high-tech good. Food production is undertaken by unskilled workers, while the high-tech product is made only by horizontally differentiated skilled workers. Owing to the...

This paper addresses a complex of globalization issues: the effect of globalization on the skill premium; the effect of globalization on unemployment; the relative importance of globalization and exogenous technical change; the effect of globalization on the ability of national governments to...

A prominent feature of economic geography in America is the positive correlation amongst local incomes, housing costs and city population. This paper embeds a black box agglomeration economy within a more neoclassical general equilibrium model of local wages, rents and population to assess the...