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 policy-imposed barriers. A loosening of the immigration quota reduces outsourcing …

With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …

intermediate good in-house and outsourcing it to a non-unionised foreign supplier that makes a relationship-specific investment in … developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘escape …’ the power of domestic unions and on the existence of intra-industry wage dispersion. We show that outsourcing typically …