This paper analyzes a North-South trade model with costly offshoring and equilibrium unemployment due to union wage … their bargaining power. With firm heterogeneity, there is scope for multiple equilibria. -- offshoring ; unemployment …

unemployment is introduced by an exogenously given wage rate, orientating ourselves by what has been called in the literature the …

The reduction of the high mass unemployment is on top of the political agenda in various countries. Especially low …-skilled workers with low wages suffer from this mass unemployment. Therefore, we propose a basic income scheme/low wage subsidy scheme …

Minimum wages, global markets, unemployment …