International migration versus foreign investment in the presence of unemployment

"This paper extends the standard (two-factor, one-good) model of international factor movements, to include unemployment due to a minimum-income guarantee within the capital-abundant country. From this country's perspective, we establish important departures from previous (full-employment) results. Most notably, our analysis shows that: (1) free factor mobility is worse than no mobility; (2) the optimal degree of labour migration is zero; and (3) national welfare can always be maximized by an optimal flow of capital. The analysis is then extended to examine: (1) illegal migration; (2) subsidization of employment; and (3) alternative views of unemployment."     

Unemployment and welfare consequences of international outsourcing under monopolistic competition

This paper challenges the conventional academic view that international outsourcing is just another form of gainful trade. Contrary to that view, we show that labour‐service outsourcing can reduce the high‐wage country's welfare even when product‐market trade is beneficial, within a model that combines involuntary unemployment and monopolistic competition. Outsourcing's impact on welfare is worsened by a definite loss of jobs and a possible contraction in the range of varieties produced worldwide. While owners of capital benefit from outsourcing under certain conditions, labour's welfare always falls.     

Tariffs,foreign capital and immiserizing growth

For a small tariff-imposing country, within the standard two-commodity two-factor model of international trade, this paper reconsiders the implications of an inflow of capital from abroad. When the host country continues to import the capital-intensive good while remaining incompletely specialized, the analysis shows that the capital inflow must reduce host-country welfare, assuming that the foreign capital receives the full (untaxed) value of its marginal product. Under other circumstances considered, however, the inflow may have different consequences for welfare.     

The Structured Interview: Reducing Biases Toward Job Applicants with Physical Disabilities

Research shows that the traditional job interview is a poor indication of a candidate's potential. However, when employers structure the interview process, they are more effective at predicting success, forming consistent evaluations, and reducing discrimination. The current study tested whether the structured interview also serves to reduce biases involved in interviewing applicants who have a physical disability. In the non-structured interview, results showed that there was a leniency bias, where raters evaluated disabled candidates more positively than equally qualified non-disabled candidates. Structured interviews reduced this effect. These findings add to the support for the structured interview as a way of increasing fairness in employee selection.     

The paradoxes of immiserizing growth and donor-enriching “recipient-immiserizing” transfers: A tale of two literatures

Zusammenfassung Das Paradoxon des Verelendungswachstums und das Paradoxon der den Geber bereichernden (den Empf?nger ?rmer machenden) Transfers: Eine Geschichte zweier Theorien. — Dieser Aufsatz soll eine Brücke schlagen zwischen zwei Str?mungen der theoretischen Literatur, nach der Wachstum paradoxerweise zur Verelendung führt und nach der ebenfalls paradoxerweise im Falle eines Transfers der Empf?nger von Leistungen an Wohlfahrt einbüΒt. Die spezifischen Fragen, die die beiden Gruppen der AuΒenhandels-theoretiker und mathematischen ?konomen stellen, reflektieren deren jeweilige Tradition. Die grundlegenden Theoreme, die abgeleitet werden, scheinen deshalb auf den ersten Blick nur wenig Beziehung zueinander zu haben. Sogar die Bedingungen, die aufgestellt werden, um in offensichtlich identischen Modellen die Paradoxa zu erreichen, scheinen gelegentlich unterschiedlich und widersprüchlich zu sein. Angesichts der zentralen Bedeutung dieser Ph?nomene und ihrer Analyse für mehrere wichtige Bereiche von Theorie und Politik bedarf der Gegenstand des vorliegenden Aufsatzes kaum noch einer Rechtfertigung.

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Résumé Les paradoxes de la croissance d’appauvrissement et des transferts enrichissants les donateurs (appauvrissants les récepteurs): un essai de deux littératures. — Dans cet article l’auteur essaie de réconcilier deux courants de la littérature théoretique sur la possibilité paradoxe d’une croissance d’appauvrissement et la possibilité paradoxe d’un récepteur appauvrissant ou d’un donateur enrichissant si un donateur fait des transferts. Les questions précises adressées par les théoriciens ont reflété leurs traditions correspondantes. C’est pourqoui, á première vue, les théorèmes centraux dérivés par eux semblent avoir peu de rapport l’un avec l’autre. Même les conditions établies pour obtenir les paradoxes semblent être des fois différentes et contradictoires oú l’on croit d’avoir des modèles identiques. En vue de l’importance centrale de ces phénomènes et de leur analyse pour quelques aspects décisifs de la théorie et de la politique il ne faut guère justifier le but de cet article.

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Resumen Las paradojas del crecimiento empobrecedor y transferencias enriquecedoras del donante (empobrecedoras del receptor): un relato de dos literaturas. — El présente artfculo esta disenada para construir un puente entre dos literaturas sobre la posibilidad parad?jica de crecimiento empobrecedor y la posibilidad parad?jica de un receptor empobrecido. Las preguntas précisas formuladas por los dos conjuntos de teóricos han reflejado sus respectivas tradiciones. Los teoremas centrales derivados por ellos, por lo tanto, parecen tener a primera vista poca relacion entre ellos. Incluso las condiciones establecidas para la obtención de las paradojas, en lo que surgen ser modelos idénticos, parecen ser a momentos diferentes y contradictorias. En vista de la importancia central de estos fenómenos y su analisis, para varias areas criticas de la teoria y la politica, el objetivo del présente articulo practicamente no necesita ser justificado.

     

Absolute and Comparative Advantage, Reconsidered: The Pattern of International Trade with Optimal Saving

The paper obtains new results about absolute and comparative advantage, by introducing international technological differences into the three–sector Findlay–Komiya and two–sector Oniki–Uzawa–Stiglitz models of open–economy growth with optimal saving. For example, if a country has the same Hicks–neutral advantage in all industries, it exports the capital–intensive tradable, even though the technological advantage is only absolute rather than comparative. Alternatively, even a small comparative advantage in some good is sufficient for the advanced country to export this product, regardless of relative factor supplies. In either case, the fundamental reason for trade is technological superiority rather than factor abundance.     

Unemployment and Growth in the Long Run: an Efficiency‐Wage Model With Optimal Savings*

An efficiency‐wage model of steady‐state equilibrium with labor‐augmenting technical progress is developed to explore the long‐run relationship between unemployment and growth. The rate of productivity growth is either specified exogenously or determined endogenously. In both cases, we preserve key results of the Shapiro–Stiglitz efficiency‐wage analysis without growth. Our model, however, also yields some striking new results. For instance, an exogenous increase in the growth rate may raise the rate of efficiency‐wage unemployment, and a once‐for‐all rise in the labor force may reduce the unemployment rate in the endogenous‐growth case.     

The Trouble with Offshoring: Static and Dynamic Losses in the Presence of Unemployment

This study provides theoretical support for the popular objection to offshoring, whereby firms at home employ services of labour located abroad. In the presence of unemployment, our analysis highlights welfare losses from offshoring – not only for the static case of a fixed stock of capital, but also for the dynamic one of optimal saving and investment. We compare these static and dynamic losses to the gains that would instead arise under full‐employment conditions, assumed by most of the theoretical literature on offshoring. Our results suggest that public concerns over offshoring are justified when unemployment is taken explicitly into account.     

Time structure of production and the theory of international trade

This paper reexamines aspects of international trade theory by taking account of the time required for transforming inputs into outputs. The discussion focuses explicitly upon the time structure of production, characterized by profiles of inputs and outputs over time. Each of the model's two consumer-good sectors has different flow-input flow-output technology, with which labor produces heterogeneous capital goods and final output. As shown by the analysis, intersectoral differences in the time structure of production have important implications for the impact of world trade on a country's employment of labor, accumulation of capital and level of income.