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Many countries suffer from persistently high unemployment rates. The scope for labour market reforms is often limited …
Persistent link: https://www.econbiz.de/10001599168
It is well known from the literature that a unionisation of labour markets leads to an increase in wages and a decrease in employment. However, in these models human capital formation is usually taken as given. This paper internalises the education decision and shows that a unionisation of the...
Persistent link: https://www.econbiz.de/10010440955
cannot easily switch industries and wages are inflexible in the short run, globalization tends to increase unemployment. In …The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With … this situation, government unemployment benefits reduce the wages that exporting firm's need to pay workers as risk …
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We show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect … improvements in the technology of offshoring. -- offshoring ; trade in tasks ; unemployment ; search and matching …
Persistent link: https://www.econbiz.de/10003965854
. We develop a model of task trade that allows for equilibrium unemployment. In this model, there are two margins of …-monotonic adjustment: Early stages of offshoring always lead to higher unemployment, while later stages may entail net job creation. We … highlight this potential through numerical simulations. -- Offshoring ; Trade in Tasks ; Unemployment ; Non-monotonicity …
Persistent link: https://www.econbiz.de/10009229069
unskilled workers in the flexiwage economy and lower the unemployment in the minimum wage economy. This follows because … unemployment may be a source of competitive advantage due to the income effect. If the two countries differ only in terms of factor … endowments (but operate the same minimum wage) free trade moves the two countries towards an equalisation of unemployment …
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