Showing 1 - 10 of 10
improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …We present a model of offshoring of tasks to a developing nation, which is characterized by a minimum wage formal … informal sector. An improvement in the productivity in performing offshored tasks in the developing country raises offshoring …
Persistent link: https://www.econbiz.de/10012242847
This paper unpacks the role of the domestic content of imports as a novel source of policy interdependence along the global supply chain. We show how a rise in local contents embodied in imports can skew national trade policy preferences, and pull upstream and downstream countries in asymmetric...
Persistent link: https://www.econbiz.de/10013471205
The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include …
Persistent link: https://www.econbiz.de/10011480815
Morocco's trade liberalization policies coincided with macroeconomic growth over the past two decades. The relationship between trade liberalization and individual-level labor-market outcomes, however, are not well understood. By combining three complementary approaches and modeling techniques,...
Persistent link: https://www.econbiz.de/10014420406
This paper studies how a positive export shock - the sharp increase in garment-sector exports that began at the end of the Multifibre Arrangement (MFA) - spread through Bangladesh's labor markets. Although the end of the MFA was arguably exogenous to Bangladesh, we instrument export demand with...
Persistent link: https://www.econbiz.de/10012184052
We study the dynamic effects of export exposure over local labor markets in Indonesia. We develop an empirical strategy to instrument exposure to exports using exposure to foreign demand shocks and validate it showing that the labor market responses are consistent with those expected from demand...
Persistent link: https://www.econbiz.de/10014366874
Are the wage gains from exports specific to exporting industries, or do they dissipate throughout the economy? In the language of trade theory, are the benefits from exporting industry specific or factor specific? To analyze this question, we study the case of Bangladesh. Bangladesh was the 4th...
Persistent link: https://www.econbiz.de/10013275362
Morocco's trade liberalization policies have promoted economic progress over the past two decades. However, effects on Morocco's local labor market outcomes vary. By combining three complementary approaches and modeling techniques, this paper estimates: (i) how trade agreements have increased...
Persistent link: https://www.econbiz.de/10014287217
This paper focuses on how gender segmentation in labor markets shapes the local effects of international trade. We first develop a theoretical framework that embeds trade and gender-segmented labor markets to show that foreign demand shocks may either increase or decrease the female-to-male...
Persistent link: https://www.econbiz.de/10013500673
The rise of global supply chains over the last three decades intensified international attention to the conditions endured by workers in poor countries. Collapsed buildings, fires and death created an imperative to address poor conditions. Consumers, non-governmental organizations,...
Persistent link: https://www.econbiz.de/10012198522