Increased globalization - the international integration of markets for goods, technology, labor, and capital - has coincided in the past 20 years with a shift in demand from less-skilled workers to those with more skills. Have imports from developing countries been responsible for the lowered...

We use a unique firm-level panel data set of multinational parents and their foreign affiliates to analyze whether profits are shared across borders within multinational firms. Using both fixed-effects and generalized method-of-moments estimators, affiliate wage levels are estimated to respond...