The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in...

The aim of this paper is to present a review of the theoretical and empirical literature about the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased the wage inequality in...

In this chapter, we analyze immigration and its effect on urban and regional economies focusing on productivity and labor markets. While immigration policies are typically national, the effects of international migrants are often more easily identified on local economies. The reason is that...

We present a formal model of the effect of heightened product market competition induced by trade liberalization on the distribution of income between profits and wages. Integration increases the employment cost of wage demands, thereby decreasing bargained wages and the share of rents accruing...

This paper contributes to the debate on the effects of trade versus technological change on wage differentials. We propose an explanation of the stylized facts which is based on interactions between openness and technological change because of labor market institutions and government...

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...

The U.K. skill premium fell from the 1950s to the late 1970s and then rose very sharply. This paper examines the contributions to these relative wage movements of international trade and technical change. We first measure trade as changes in product prices and technical change as TFP growth....

Considerable effort has been devoted in recent years to the description of wage structure. This research has documented a rising return to education, unobserved skill, and work experience. However, there appears to be little research into causes of the change in structure. This paper seeks to...

Some individuals advocate incorporating labor standards into trade agreements. Others are vehemently opposed to the idea. Both sides to the controversy give compelling arguments to support their positions. This paper examines the controversy and applies ethical theory to determine whether...

We develop an oligopoly model in which firms facing unionised domestic labor markets choose between producing an intermediate good in-house and outsourcing it to a nonunionised foreign supplier that makes a relationship-specific investment in developing the intermediate. The paper sheds light on...