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In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the...
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We provide an analysis of the impact of migration on the skilled- unskilled wage gap. In particular, we show the possibility of a rise in the wage gap following the migration of skilled (unskilled ) labor.
Persistent link: https://www.econbiz.de/10005416803
We construct a game theoretic model of an oligarchic economy that potentially could be targeted by smart international sanctions. Oligarchs in this economy provide support for their leader, a strong man and potentially an autocrat, in return for favors that results in having income higher than...
Persistent link: https://www.econbiz.de/10011263448
The paper constructs a general equilibrium model of North–South trade with nontraded goods, real exchange rate, and a continuum of components that North partly offshores to South. It is shown that a protectionary policy which restricts offshoring may have the unintended consequence of widening...
Persistent link: https://www.econbiz.de/10010889783
type="main" xml:id="ecpo12023-abs-0001" <p>In the context of a simple model of strategic offshoring, we investigate the reasons why firms may simultaneously source fragments domestically and internationally. We explore the impacts of offshoring on the production pattern of finished goods, tradable...</p>
Persistent link: https://www.econbiz.de/10011037327
type="main" xml:id="ecpo12047-abs-0001" <p>We construct a general equilibrium model of urban unemployment with a continuum of heterogeneous urban firms producing differentiated products in a monopolistic competitive market. We introduce a notion of pattern of technical progress among the...</p>
Persistent link: https://www.econbiz.de/10011037351