Arnold, Lutz G. and Trepl, Stefanie (2015) A North-South Trade Model of Offshoring and Unemployment. OPEN ECONOMIES REVIEW, 26 (5). pp. 999-1039. ISSN 0923-7992, 1573-708X
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This paper analyzes a North-South trade model with offshoring and unemployment due to union wage setting. A reduction in the cost of offshoring decreases employment in the North except possibly if there is little offshoring initially. If the scale of Northern firms also falls, then each Northern agent's welfare declines. Unions have an incentive to reduce their own bargaining power by strategically delegating wage negotiation so as to cushion the negative employment effects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | EMPLOYMENT; GLOBALIZATION; INVESTMENT; INNOVATION; WORKERS; IMPACT; WAGES; FDI; Offshoring; Unemployment; North-South trade |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Theoretische Volkswirtschaft (Prof. Dr. Lutz Arnold) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 04 Jun 2019 13:03 |
| Last Modified: | 04 Jun 2019 13:03 |
| URI: | https://pred.uni-regensburg.de/id/eprint/4580 |
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