International fragmentation : boon or bane for domestic employment?

Arbeitspapier

In this paper, we introduce the fairness approach to efficiency wages into a standard model of international fragmentation. This gives us a theoretical framework in which wage inequality and unemployment rates are co-determined and therefore the public concern can be addressed that international fragmentation and outsourcing to low wage countries lead to domestic joblosses. We develop a novel diagrammatic tool to illustrate the main labour market effects of international fragmentation. We also explore how preferences for fair wages and the size of unemployment benefits govern the employment effects of outsourcing and critically assess the role of political intervention that aims to reduce unemployment benefits under internationally fragmented production.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 1595

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Trade and Labor Market Interactions ; Neoclassical Models of Trade
• Thema: international fragmentation ; unemployment ; fair wages ; Outsourcing ; Internationale Arbeitsteilung ; Beschäftigungseffekt ; Auslandsproduktion ; Arbeitsmarkt ; Effizienzlohn ; Lohnstruktur ; Globalisierung ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Egger, Hartmut ; Kreickemeier, Udo
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/19059
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ