We study the role of labor market mismatch in the adjustment to a trade liberalization that results in the offshoring …-intuitively this type of job displacement is actually beneficial for the labor market in the country doing the offshoring. Mismatch … dampens both the increase in the aggregate unemployment rate and the decline in aggregate wages that come as a consequence of …

terms of trade. Unskilled labour is subject to the same or different minimum wages in one or both countries. The trading …. -- Minimum wages ; global markets ; unemployment …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …

gains from trade, or a (negative) terms of trade effect linked with the vanishing effect of distance on wages. This paper … offshoring in the short run and in the long run (when technology levels are endogenous). The short-run analysis shows that when … research efforts in response to increased offshoring. In particular, the rich country always gains from increased fragmentation …