Trade, wages, and profits

Egger, Hartmut; Egger, Peter; Kreickemeier, Udo

doi:10.1016/j.euroecorev.2013.09.008

Cited by 66 publications

(63 citation statements)

References 47 publications

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“…Furthermore, search and matching frictions and the resulting bargaining over the surplus from production can induce wages to vary across firms (see for example Davidson et al 2008 andHelpman et al 2010). Methodologically, our work connects most closely with the wider literature quantifying models of international trade, heterogenous firms and labor markets, including Coşar et al (2015), Egger et al (2013) and Eaton et al (2013).…”

Section: Introductionmentioning

confidence: 55%

Trade and Inequality: From Theory to Estimation

Helpman¹,

Itskhoki²,

Muendler³

et al. 2012

146

167

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While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations and sectors. Using linked employer-employee data for Brazil, we show that much of overall wage inequality arises within sectoroccupations and for workers with similar observable characteristics; this within component is driven by wage dispersion between firms; and wage dispersion between firms is related to firm employment size and trade participation. We then extend the heterogenous-firm model of trade and inequality from Helpman et al. (2010) and estimate it with Brazilian data. We show that the estimated model provides a close approximation to the observed distribution of wages and employment. We use the estimated model to undertake counterfactuals, in which we find sizable effects of trade on wage inequality.

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Section: Introductionmentioning

confidence: 55%

Trade and Inequality: From Theory to Estimation

Helpman¹,

Itskhoki²,

Muendler³

et al. 2012

146

167

View full text Add to dashboard Cite

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“…26 An analogous result holds for the trade models of Egger andKreickemeier (2009, 2012) and Helpman, Itskhoki, lower than the autarky level at low levels of offshoring, and higher than the autarky level at high levels of offshoring. Figure 3 illustrates the resulting S-shape of the A L locus, alongside the Gini-coefficient for entrepreneurial income A M that we computed in the previous section, with the only modification that nowξ replaces ξ.…”

mentioning

confidence: 49%

“…A useful starting point are the findings in Egger, Egger, and Kreickemeier (2011), who conduct a structural empirical estimation of the Egger and Kreickemeier (2012) model.…”

Section: A Calibration Exercisementioning

confidence: 99%

“…Employing information from the Amadeus data-set, Egger, Egger, and Kreickemeier (2011) report the following parameter estimates for the average country in their data-set, which covers five European economies: θ = 0.102, σ = 6.698, k = 4.306. While, to the best of our knowledge, there are no other directly comparable estimates for the rent-sharing parameter available, the estimate of σ lies in the range of parameter estimates reported by Broda and Weinstein (2006) and is well in line with the parameter value considered by Arkolakis (2010) in his calibration exercise.…”

Section: A Calibration Exercisementioning

confidence: 99%

“…37 We offer here the source code as well as the parameter estimates used in our calibration. At first, we set parameter values: k = 4.306, σ = 6.698 and θ = 0.102, based on the results in Egger, Egger, and Kreickemeier (2011), and η = 0.75, based on Blinder (2009) and Blinder and Krueger (2012 As all variables of interest can be expressed in terms of the share of offshoring firms, χ, we define χ=. ; 38 In the source code, we use ξ instead ofξ to save on notation.…”

Section: Source Code For the Calibration Exercises In Sections 5 Andmentioning

confidence: 99%

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Offshoring Domestic Jobs

Egger¹,

Kreickemeier²,

Wrona³

2017

International Trade and Labor Markets

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe set up a two-country general equilibrium model, in which heterogeneous firms from one country (the source country) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring. Each firm is run by an entrepreneur, and inequality between entrepreneurs and workers as well as intra-group inequality among entrepreneurs is higher with offshoring than in autarky.All results hold in a model extension with firm-level rent sharing, which results in aggregate unemployment. In this extended model, offshoring furthermore has non-monotonic effects on unemployment and intra-group inequality among workers. The paper also offers a calibration exercise to quantify the effects of offshoring.JEL-Classification: F12, F16, F23

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Trade and the organization of production: Efficiency and labour market outcomes

Viegelahn¹,

Zheng

Soete

et al. 2017

World Employ Soc Outlook

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This chapter presents novel estimates on the numbers and shares of workers in exporting and importing firms of the formal private sector in 132 countries. It shows that the share of workers employed by exporting firms dropped significantly during the trade collapse caused by the global economic crisis and has stagnated ever since. For the same set of countries, the chapter also documents that exporters and importers are more productive and pay higher wages than their non‐trading counterparts. There is, however, a gap between the productivity and the wage premium of exporting and importing firms, indicating that gains from trade are only partially translated into gains for workers. Within exporting firms, heavy exporters tend to have lower labour productivity and pay lower wages than other exporters, while firms that supply inputs into GSCs have higher productivity and pay higher wages than other exporters. Exporters, especially those that form part of GSCs by assembling final goods, employ more women than non‐exporters, but at the same time tend to have higher shares of temporary employment. Importers are found to employ fewer temporary workers.

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Trade, wages, and profits

Cited by 66 publications

References 47 publications

Trade and Inequality: From Theory to Estimation

Trade and Inequality: From Theory to Estimation

Offshoring Domestic Jobs

Trade and the organization of production: Efficiency and labour market outcomes

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