Countries subject to the same degree of exposure to globalization may experience very different levels of economic insecurity depending on social support or employment protections provided by the state or even due to insurance obtained by households. We identify five varieties of industrialized...

This paper develops a technology-gap model of intraindustry trade in oligopoly industries with megacorp pricing. Firms maximize market share by choosing available products in the product line. They produce subject to a product life cycle and a constraint that the markup over average costs must...

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This paper considers the effects of globalization on economic insecurity. It argues that the heightened economic insecurity calls not only for greater oversight of finance, but a rebuilding of domestic labor market protections.

Analysis of 35 U.S. manufacturing and service industries over the period 1998-2006 supports aggregate and firm-level studies showing that off-shoring is associated with a higher share of corporate profit in total value added. But these “dynamic” gains from off-shoring have not been realized,...

This paper shows that a “new wave of globalization,” involving extensive offshoring, has raised both actual and perceived labor market insecurity in industrialized countries. The paper analyzes various channels through which this new wave of globalization leads to economic insecurity. It...

Imports are linked to higher cost mark-ups and firm profits, and the gains from such non-competitive imports--the result of offshoring--are increasingly associated with the reinvestment of these higher profits. Our regression analysis of 35 US manufacturing and service industries over the period...

The recent large and rapid slowdown in economic activity has resulted in even larger and more rapid declines in international trade. As world trade is set to rebound, this paper addresses three questions: (i) Will trade volumes rebound in a symmetric fashion as world economic growth rebounds?...