We address the role of labor cost differentials for national tax policies. Using a simple theoretical framework with two countries competing for a mobile firm, we show that in a bidding race for FDI, it is optimal for governments to compensate firms for international labor cost differentials....

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality both within and between countries. We emphasize the distinction between managerial and production labor. Production labor is assumed to be a variable input composed of tradable...

Labor-importing countries adopt differing immigration policy on foreign workers. They all restrict the number allowed entry and many set wage ceilings at levels below the wage paid the native workers. The differing restrictive immigration policies result in the segmentation of the world labor...

By using two alternative intra-industry trade models (1. - New goods cannot be introduced into the economy; 2. - The possibility for a set of capital goods available in the economy to vary; both models consider the existence of an intersectoral linkage), I show by means of Applied General...

The impact on internal migration of the recent Customs Union (CU) agreement between Turkey and the European Union (EU) has been studied with an intra-industry trade Applied General Equilibrium (AGE) model with intersectoral capital mobility, under two alternative specifications for the labour...

I analyze the length of the workweek of foreign-born workers in the U.S. I concentrate on workers supplying long hours of work - 50 or more weekly hours and document that immigrants are less likely than natives to work long hours. Surprisingly, these differences are greatest among highly...

After a period of regulatory changes in the early 1980s we are faced with new freight transportation labor markets in the U.S. Using data from the 1984-1999 Current Population Survey, we examine trends in the wages of workers within freight transportation, with a focus on wage differentials...

Under communism, workers had their wages set according to a centrally-determined wage grid. In this paper we use new micro data on men to estimate returns to human capital under the communist wage grid and during the transition to a market economy. We use data from the Czech Republic because it...

There is by now a vast number of studies which document a sharp increase in cross-sectional wage inequality during the 2000s. It is often assumed that this inequality is of a permanent nature which in turn is used as an argument calling for government intervention. We examine these claims using...

This paper presents and analyses the sharp increase in hourly wage inequality after 1998 in Poland. The increase was similar in magnitude to the much-studied increase in British wage inequality during the 1980s. Using data from the Polish Labour Force Survey, we find this increase to be...