In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … construct a two sector general equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by … search frictions. We find that, contrary to general perception, wage increases and sectoral unemployment decreases due to …

This paper builds upon Hoon and Phelps (1992, 1997) to ask how much of the evolution of the unemployment rate over …'s productivity growth depends upon its distance from the world's technological leader. One motivating contemporary example includes … the evolution of unemployment rates in Europe as it recovered from the second world war and caught up technologically to …