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The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...
Persistent link: https://www.econbiz.de/10003456055
This paper examines the effects of a unilateral reform of the redistribution policy in an economy open to international trade. We set up a general equilibrium trade model with heterogeneous agents allowing for country asymmetries. We show that under international trade compared to autarky, a...
Persistent link: https://www.econbiz.de/10012622334
leads to a decline in pollution taxes regardless of whether pollution taxes are set at the federal (centralized) or local … (decentralized) level, and it increases social welfare. The effect under a decentralized system is smaller than if these taxes are … with trade liberalization if federal taxes are used. …
Persistent link: https://www.econbiz.de/10010356188
The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...
Persistent link: https://www.econbiz.de/10010300187
This paper analyzes how trade liberalization influences the unemployment rate of workers with different abilities. We refine the Melitz (2003) framework to account for trade unions and heterogeneous workers, who differ with respect to their abilities. Our main findings are: (i) highability...
Persistent link: https://www.econbiz.de/10010286355
This paper analyzes how trade liberalization influences the unemployment rate of workers with different abilities. We refine the Melitz (2003) framework to account for trade unions and heterogeneous workers, who differ with respect to their abilities. Our main findings are: (i) highability...
Persistent link: https://www.econbiz.de/10009231376
This paper examines the various arguments that have been put forth in favor of protectionism, from both an accounting and philosophical perspective. The author concludes that arguments against free trade are based on faulty premises, illogical reasoning or incorrect facts. Part 2. This paper was...
Persistent link: https://www.econbiz.de/10012981890
and unskilled workers; sector-specific consumption taxes and profit taxes to affect inter-sectoral wage inequality; sector …
Persistent link: https://www.econbiz.de/10010394400
public activities (public consumption and transfers) financed by income taxes distort labour markets and cause higher wages …-to-the-bottom bias despite that taxes harm competitiveness. In fact we identify an expansionary bias in fiscal policies that is likely to … increase with globalization when taxes finance either public consumption or transfers …
Persistent link: https://www.econbiz.de/10013141887
This paper analyzes how trade liberalization influences the unemployment rate of workers with different abilities. We refine the Melitz (2003) framework to account for trade unions and heterogeneous workers, who differ with respect to their abilities. Our main ?findings are: (i) high ability...
Persistent link: https://www.econbiz.de/10009293545