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We study the effects of trade integration on the regional coevolution of income, migrations and unemployment in a … a recently documented empirical puzzle, i.e., the divergence of unemployment rates, together with low migrations and …
Persistent link: https://www.econbiz.de/10014121350
chapter compares the impact of international trade in intermediate inputs (offshoring) on wage inequality in two distinct but … similar frameworks. In the first framework the profitability of offshoring is based on increasing returns to scale on the task …-level, whereas the second framework relies on differences in relative factor endowments of the two countries involved in offshoring …
Persistent link: https://www.econbiz.de/10011742945
domestic labor force at the sector-level. In order to better elucidate the offshoring employment relationship, this paper … production-side shock that changes firms' offshoring decision can influence the local economy and its labor market. …
Persistent link: https://www.econbiz.de/10011985494
We look at the effect of domestic redistribution policy on offshoring in an asymmetric two country model of … by the share of offshoring firms in the economy. The intuition for this result is straightforward. The progressive income … therefore affect the domestic economy not only directly but also via changes in the amount of offshoring. This has important …
Persistent link: https://www.econbiz.de/10012623131
sharing, which results in aggregate unemployment. In this extended model, offshoring furthermore has non-monotonic effects on …) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring …
Persistent link: https://www.econbiz.de/10010604634
Offshoring has gained a significant momentum in recent years. Firm size appears to be the leading factor … differentiating firms that offshore from those that do not. We present a model that blends offshoring, or trade in tasks, with a … firm heterogeneity offers new tools for analyzing the effects of offshoring on the employment dynamics within an individual …
Persistent link: https://www.econbiz.de/10005819635
This paper sets up a general equilibrium model, in which firms are heterogeneous due to productivity differences and workers have fairness preferences and hence provide full effort only if their factor return is sufficiently high. With the wage considered to be fair by workers depending on the...
Persistent link: https://www.econbiz.de/10010274385
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a …
Persistent link: https://www.econbiz.de/10010280836
unemployment. If the jobs performed by domestic workers can be easily substituted by imports, then globalization reduces wages and … increases unemployment. In this situation, in the absence of any government intervention globalization not only reduces the … welfare of workers but could reduce social welfare as well. Both unemployment benefits and severance payments can protect …
Persistent link: https://www.econbiz.de/10010477152
factor capital, and the efficiency effect, consumers and producers alike benefit from offshoring industry towards a low …
Persistent link: https://www.econbiz.de/10003908402