Fears of increasing inequality play a dominant role in current debates on how globalization is affecting our economies. After a brief review of recent trends in wage inequality, this policy paper presents new insights on the dynamic effect of trade liberalization on wage inequality. In the...

Fears of rising wage inequality and job loss loom large in current debates on free trade. Surprisingly, however, there exists little academic research on how to compensate those who lose from free trade. This policy paper reviews the existing theoretical literature on trade and compensation, and...

We test the often-cited hypothesis that high levels of child labour attract foreign investors. Using panel data we show the overall effect, which child labour has on foreign direct investment (FDI), to be a (small) negative one. We find strong evidence for the theoretical prediction that child...

The interaction between trade liberalisation, product and process innovation, and relative skill demand is analysed in a model of international oligopoly. Lower trading barriers increase the degree of foreign competition. The competing enterprises respond by investing more aggres- sively in...

In der aktuellen Debatte um die Flüchtlingskrise wird häufig ein historisches Vorbild bemüht: Die Integration der Vertriebenen nach dem zweiten Weltkrieg. Bis 1950 kamen alleine nach Westdeutschland acht Millionen Vertriebene aus Mittel- und Osteuropa, die meisten von ihnen aus den ehemaligen...