knowledge sector is bounded, as productivity increases, the economy moves from a Solovian zone where wages increase with … bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than set … employment in the material goods sector. International trade may reduce wages in poor countries and increase them in rich …

This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax … response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for …, domestic labor. -- outsourcing ; foreign direct investment ; optimal nonlinear taxation …

innovation and patenting activity. Is foreign technological convergence an important source of the recent evolution of the US …

development of wages and employment across skill groups, there is considerable disagreement to explain these trends, in particular …

In this paper, we introduce the fairness approach to efficiency wages into a standard model of international … the public concern can be addressed that international fragmentation and outsourcing to low wage countries lead to … fragmentation. We also explore how preferences for fair wages and the size of unemployment benefits govern the employment effects of …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality … restricted to differentiated final goods with a world with trade in both final goods and production tasks. -- offshoring …

offshoring. In this second-best world, a revenue-neutral decrease in the progressivity of the tax schedule promotes higher … redistribution to an increasing share of lower-wage workers. However, as the tax reform involves an increase in the offshoring …

that helps low-skilled labor is conducive for controlling inequality and raising wage. Skilled talent-led innovation could … embedded in talented immigrants targeted for innovation. …