workers at home and abroad. In an extension to our baseline model, we illustrate that offshoring production from the high …

Our paper integrates results from trade-in-task theory into mainstream trade theory by developing trade …-way offshoring/trade-in-tasks. …

inequality and raises unemployment, but expected welfare gains are ensured if workers are risk neutral. And while wage inequality …

vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in … shaping welfare, trade flows, productivity, and unemployment. We show that both countries gain from trade but that the … frictions in both countries benefits both of them. The model generates rich patterns of unemployment. In particular, better …

This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market …. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral … reductions in labor market frictions increase a country's welfare, can raise or reduce its unemployment rate, yet always hurt the …

labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and …

with the theory, we find considerable evidence of higher wages and wage growth in large and/or foreign-owned firms. These …