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Econ 7982: Globalization, Labor Markets & Inequality

Econ 7982

Globalization, Labor Markets & Inequality

Professor: Douglas Nelson

Office: Tilton 108 (Murphy Institute), Phone: 865-5317

Office Hours: Tuesday and Thursday, 3:30-5:30

Phone: 865-5317

email: dnelson@tulane.edu

Webpage: http://nelson.wp.tulane.edu/


The relationship between economic globalization and economic inequality is an issue of first rate significance, scientifically, socially and politically. There is considerable evidence that, since sometime in the 1980s at the earliest, a fundamental change in globalization has occurred. These changes affect both the distribution of economic activity and the returns from that activity, both between and within nations. The appropriate theoretical and econometric tools for the systematic study of these issues are distributed more-or-less equally between the fields of international trade and labor economics. Although our focus will be primarily on the effect of globalization on differential returns to factors of production (and labor in particular) within countries, we will also consider the distribution of the returns to globalization between countries. In terms of both of these, we will begin with the methods developed to deal with the first era of globalization (what Baldwin calls the “first unbundling”) and then consider the current period (the “second unbundling”).


Evaluation: Your performance in this course will be evaluated on the basis of your seminar participation and the preparation of a piece of original research. In each meeting, we will discuss about 3 papers. Each paper will be presented by a member of the seminar and discussed by the rest of the members of the seminar. The presentations should last 30-40 minutes, emphasizing the main theoretical and econometric innovations and results. In presentation, your evaluation will depend on clarity and correctness of the presentation and response to questions. During discussion, you will be evaluated on the basis of the cogency and originality of your comments.


Research papers. Every member of the seminar is required to produce a research paper on some aspect of the link between globalization and inequality. These papers must be original work,plagiarism will not be tolerated. Broadly speaking, I expect papers in the 25-35 page range. To ensure that topics are well-established and suitable for the course, I require a proposal due no later than the fifth meeting of the course. Late proposals will result in a 10 point penalty to be assessed on the paper’s final score. Research papers are due at the last regular meeting of the course. Late papers will not be accepted, and will earn a score of 0 points.


Econ 7982                                      SYLLABUS                                   Spring 2017


Topic I. Background Material


● Globalization & Inequality, Basics

○ Baldwin (2016). The Great Convergence: Information Technology and the New Globalization.

○ Milanovic (2016). Global Inequality: A New Approach for the Age of Globalization. [Chapters 1-3]

○ Morelli, Smeeding and Thompson (2015). “Post-1970 Trends in within-Country Inequality and Poverty: Rich and Middle-Income Countries,” in Atkinson and Bourguignon eds, Handbook of Income Distribution. Amsterdam: Elsevier, 593-696.

○ Anand and Segal (2015). “The Global Distribution of Income,” in Atkinson and Bourguignon eds, Handbook of Income Distribution. Amsterdam: Elsevier, 937-79.


● The Methodology of Labor Economists: S, D & I

○ Katz and Autor (1999). “Changes in the Wage Structure and Earnings Inequality,” in O. C. Ashenfelter and D. Card, eds, Handbook of Labor Economics. Amsterdam: Elsevier, 1463-1555.

○ Johnson and Stafford (1999). “The Labor Market Implications of International Trade,” in O. Ashenfelter and D. Card eds, Handbook of Labor Economics. Amsterdam: Elsevier, 2215-88.

○ Nickell and Layard (1999). “Labor Market Institutions and Economic Performance,” in O. C. Ashenfelter and D. Card eds, Handbook of Labor Economics. Amsterdam: Elsevier, 3029-84.

○ Bound and Johnson (1992). “Changes in the Structure of Wages in the 1980s: An Evaluation of Alternative Explanations.” American Economic Review, V.82-#3, 371-92.

○ DiNardo, Fortin and Lemieux (1996). “Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach.” Econometrica, V.64-#5, 1001-44.

○ Hammermesh (1993). “The Static Theory of Labor Demand”. Chapter 1 of Labor Demand. Princeton: Princeton University Press, pp. 17-60.

○ Johnson (1998). “The Impact of Immigration on Income Distribution among Minorities”. In Hammermesh and Bean, eds. Help or Hindrance: The Economic Implications of Immigration for African Americans. New York, Russell Sage Foundation, pp. 17-50.


● The Methodology of Labor Economists: KH Complementarity and Skill-Biased Technical Change

○ Acemoglu (2002). “Technical Change, Inequality, and the Labor Market.” Journal of Economic Literature, V.40-#1, 7-72.

○ Acemoglu (1998). “Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality.” The Quarterly Journal of Economics, V.113-#4, 1055-89.

○ Goldin and Katz (1998). “The Origins of Technology-Skill Complementarity.” The Quarterly Journal of Economics, V.113-#3, 693-732.

○ Card and DiNardo (2002). “Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles.” Journal of Labor Economics, V.20-#4, 733-83.

○ Chun (2003). “Information Technology and the Demand for Educated Workers: Disentangling the Impacts of Adoption Versus Use.” The Review of Economics and Statistics, V.85-#1, 1-8.


● The Methodology of Labor Economists: Tasks

○ Autor (2013). “The ‘Task Approach’ to Labor Markets an Overview.” Journal of Labor Market Research, V.3, 185-99.

○ Acemoglu and Autor (2012). “What Does Human Capital Do? A Review of Goldin and Katz’s The Race between Education and Technology.” Journal of Economic Literature, V.50-#2, 426-63.

○ Acemoglu and Autor (2011). “Skills, Tasks and Technologies: Implications for Employment and Earnings,” in D. Card and O. C. Ashenfelter eds, Handbook of Labor Economics. Amsterdam: Elsevier, 1043-1171.

○ Sattinger (1993). “Assignment Models of the Distribution of Earnings.” Journal of Economic Literature, V.31-#2, 831-80.

○ Teulings (1995). “The Wage Distribution in a Model of the Assignment of Skills to Jobs.” Journal of Political Economy, V.103-#2, 280-315.

○ Teulings (2005). “Comparative Advantage, Relative Wages, and the Accumulation of Human Capital.” Journal of Political Economy, V.113-#2, 425-61.

○ Autor, Levy and Murnane (2003). “The Skill Content of Recent Technological Change: An Empirical Exploration.” The Quarterly Journal of Economics, V.118-#4, 1279-333.

○ Goldin and Katz. (2007). “Long-Run Changes in the Wage Structure: Narrowing, Widening, Polarizing.” Brookings Papers on Economic Activity, V.2007-#2, 135-65.

○ Goos and Manning (2007). “Lousy and Lovely Jobs: The Rising Polarization of Work in Britain.” The Review of Economics and Statistics, V.89-#1, 118-33.

○ Autor, Katz and Kearney (2008). “Trends in U.S. Wage Inequality: Revising the Revisionists.” The Review of Economics and Statistics, V.90-#2, 300-23.

○ Autor and Handel (2013). “Putting Tasks to the Test: Human Capital, Job Tasks, and Wages.” Journal of Labor Economics, V.31-#2, S59-S96.

○ Acemoglu and Restrepo (2016). “The Race between Man and Machine: Implications of Technology for Growth, Factor Shares and Employment,” MIT Economics Department Working Paper.


● The Methodology of Trade Economists: GE

○ Jones and Scheinkman (1977). “Relevance of 2-Sector Production Model in Trade Theory.” Journal of Political Economy, V.85-#5, 909-35.

○ Diewert and Woodland (1977). “Frank Knight’s Theorem in Linear-Programming Revisited.” Econometrica, V.45-#2, 375-98.

○ Leamer (1984). Sources of International Comparative Advantage: Theory and Evidence. Cambridge, Mass.: MIT Press.

○ Francois and Reinert (1997). Applied Methods for Trade Policy Analysis : A Handbook. Cambridge: Cambridge University Press.

○ Yotov, Piermartini, Monteiro and Larch (2016). An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model. Geneva: World Trade Organization.

○ Head and Mayer (2014). “Gravity Equations: Workhorse,Toolkit, and Cookbook,” in K. R. Elhanan Helpman and G. Gita eds, Handbook of International Economics. Elsevier, 131-95.

○ Costinot and Rodríguez-Clare (2015). “Trade Theory with Numbers: Quantifying the Consequences of Globalization,” in E. Helpman, K. S. Rogoff and G. Gopinath eds, Handbook of International Economics. Elsevier, 197-261.


Topic II. Globalization & Labor Market Outcomes: The Traditional Approach

● The m-factor × 1-sector model: Migration

■ Borjas (2003). “The Labor Demand Curve Is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market”. Quarterly Journal of Economics, 118(4), pp. 1335-74.

■ Ottaviano and Peri (2012). “Rethinking the Effect of Immigration on Wages.” Journal of the European Economic Association, 10(1), 152-97 (esp. 185-197).F359-F76

○ Manacorda, Manning and Wadsworth (2012). “The Impact of Immigration on the Structure of Wages: Theory and Evidence from Britain.” Journal of the European Economic Association, 10(1), 120-51 (esp. 143-151).

○ D’Amuri, Ottaviano and Peri (2010). “The Labor Market Impact of Immigration in Western Germany in the 1990’s”. European Economic Review, V.54-#4, pp. 550-570.

○ Felbermayr, Geis and Kohler (2010). “Restrictive Immigration Policy in Germany: Pains and Gains Foregone?Review of World Economics, 146(1), 1-21.

○ Brücker and Jahn (2011). “Migration and Wage-Setting: Reassessing the Labor Market Effects of Migration.” Scandinavian Journal of Economics, 113(2), 286-317.

○ Bratsberg, Raaum, Røed and Schøne (2014). “Immigration Wage Effects by Origin.” The Scandinavian Journal of Economics, V.116-#2, 356-93.

○ Ruist, and Bigsten (2013). “Wage Effects of Labour Migration with International Capital Mobility.” The World Economy, 36(1), 31-47.

○ Cohen and Hsieh (2001) “Macroeconomic and Labor Market Impact of Russian Immigration to Israel.” ms: Bar-Ilan University. [also see Chapter 2 of S. Cohen-Goldner, Z. Eckstein and Y. Weiss, 2012. Immigration and Labor Market Mobility in Israel, 1990-2009. Cambridge: MIT Press, pp. 14-40.]


● The m-factor × 1-sector model: Trade

■ Leontief (1956). “Factor Proportions and the Structure of American Trade: Further Theoretical and Empirical Analysis.” The Review of Economics and Statistics, V.38-#4, 386-407. [Appendix II, pp. 400-402]

■ Katz and Murphy (1992). “Changes in Relative Wages, 1963-1987: Supply and Demand Factors.” Quarterly Journal of Economics, V.107-#1, 35-78.

■ Sachs, and Shatz (1994). “Trade and Jobs in U.S. Manufacturing.” Brookings Papers on Economic Activity, V.1994-#1, 1-84.

■ Borjas, Freeman and Katz (1997). “How Much Do Immigration and Trade Affect Labor Market Outcomes?Brookings Papers on Economic Activity, -#1, 1-90.

○ Freeman and Katz (1991). “Industrial Wage and Employment Determination in an Open Economy,” in Abowd and Freeman eds, Immigration, Trade and the Labor Market. Chicago: Chicago University Press/NBER, 235-59.

○ Murphy and Welch (1991). “The Role of International Trade in Wage Differentials,” in Kosters ed Workers and Their Wages: Changing Patterns in the United States. Washington, DC: American Enterprise Institute, 39-69.

○ Wood (1998). “Globalisation and the Rise in Labour Market Inequalities.” The Economic Journal, V.108-#450, 1463-82.

○ Machin and Van Reenen (1998). “Technology and Changes in Skill Structure: Evidence from Seven OECD Countries.” The Quarterly Journal of Economics, V.113-#4, 1215-44.

○ Desjonqueres, Machin and van Reenen (1999). “Another Nail in the Coffin? Or Can the Trade Based Explanation of Changing Skill Structures Be Resurrected?The Scandinavian Journal of Economics, V.101-#4, 533-54. 


● What Can We Learn from Factor-Endowment Data

○ Deardorff and Staiger (1988). “An Interpretation of the Factor Content of Trade”. Journal of International Economics; V.24-#1/2, pp. 93-107.

■ Leamer (2000). “What’s the Use of Factor Contents?Journal of International Economics, V.50-#1, 17-49.

■ Krugman (2000). “Technology, Trade and Factor Prices.” Journal of International Economics, V.50-#1, 51-71.

○ Deardorff, (2000). “Factor Prices and the Factor Content of Trade Revisited: What’s the Use?Journal of International Economics, V.50-#1, 73-90.

○ Panagariya (2000). “Evaluating the Factor-Content Approach to Measuring the Effect of Trade on Wage Inequality.” Journal of International Economics, V.50-#1, 91-116.

○ Kohler (1999).  “Trade and Wages: What Can Factor Content Tell Us?,” University of Linz Economics Department Working Paper, #9906.


● The m ≤ n model: Trade

■ Lawrence and Slaughter (1993). “International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup?Brookings Papers on Economic Activity. Microeconomics, V.1993-#2, 161-226.

■ Baldwin and Cain (2000). “Shifts in Relative U.S. Wages: The Role of Trade, Technology, and Factor Endowments.” Review of Economics and Statistics, V.82-#4, 580-95.

■ Harrigan (2000). “International Trade and American Wages in General Equilibrium, 1967-1995,” in R. C. Feenstra ed The Impact of International Trade on Wages. Chicago: University of Chicago Press, 171-96.

○ Leamer (1997). “In Search of Stolper-Samuelson Effects on U.S. Wages,” in S. Collins ed Imports, Exports and the American Worker. Washington, DC: Brookings Institution, 141-214.

○ Haskel and Slaughter (2003). “Have Falling Tariffs and Transportation Costs Raised US Wage Inequality?Review of International Economics, V.11-#4, 630-50.

○ Bensidoun, Jean and Sztulman (2011). “International Trade and Income Distribution: Reconsidering the Evidence.” Review of World Economics, V.147-#4, 593-619.

○ Robertson (2004). “Relative Prices and Wage Inequality: Evidence from Mexico.” Journal of International Economics, V.64-#2, 387-409.

○ Mishra and Das (2013). “Trade Liberalization and Wage Inequality in India: A Mandated Wage Equation Approach.” Indian Growth and Development Review, V.6-#1, 113-27.

○ Xu and Ouyang (2015). “China Wage Inequality: The Role of Trade and Technology.” Applied Economics, V.47-#47, 5057-71.


● The m ≤ n model: Migration (Rybczynski & FPI)

■ Hanson and Slaughter (2002). “Labor Market Adjustment in Open Economies: Evidence from US States.” Journal of International Economics, V.57-#1, 3-29.

■ Saad-Lessler (2005). “Do Local Relative Factor Supplies Affect Local Relative Factor Prices?The BE Journal of Economic Analysis & Policy, V.5-#1.

■ Card and Lewis (2007). “The Diffusion of Mexican Immigrants During the 1990s: Explanation and Impacts,” in G. J. Borjas ed Mexican Immigration to the United States. Chicago: University of Chicago Press/NBER, 193-277.

■ Hijzen and Wright (2010). “Migration, Trade and Wages”. Journal of Population Economics; V.23-#4, pp. 1189-1211.

○ Dustmann and Glitz (2015). “How Do Industries and Firms Respond to Changes in Local Labor Supply?Journal of Labor Economics, V.33-#3, 711-50.


● Background: Trade and Migration

○ Markusen and Svensson (1985). “Trade in Goods and Factors with International Differences in Technology.” International Economic Review, 26(1), pp. 175-92.

○ Ethier and Svensson (1986). “The Theorems of International Trade with Factor Mobility.” Journal of International Economics, 20(1-2), pp. 21-42.

○ Ethier (1985). “International Trade and Labor Migration.” The American Economic Review, V.75-#4, 691-707.

○ Ethier (1996). “Theories About Trade Liberalisation and Migration: Substitutes or Complements?”. In International Trade and Migration in the APEC Region, ed. P. J. Lloyd and L. Williams, 50-68. Melbourne: Oxford University Press.

○ Brecher and Chen (2010). “Unemployment of Skilled and Unskilled Labor in an Open Economy: International Trade, Migration, and Outsourcing.” Review of International Economics, V.18-#5, 990-1000.

○ Egger, von Ehrlich and Nelson (2012). “Migration and Trade.” The World Economy, V35-#2, 216-41.

○ Iranzo, and Peri (2009). “Migration and Trade: Theory with an Application to the Eastern–Western European Integration.” Journal of International Economics, V.79-#1, 1-19.

○ Ortega and Peri. (2014). “Openness and Income: The Roles of Trade and Migration.” Journal of International Economics, V.92-#2, 231-51.

○ Ortega and Peri (2014). “The Aggregate Effects of Trade and Migration: Evidence from OECD Countries,” in A. Artal-Tur, G. Peri and F. Requena-Silventeeds, The Socio-Economic Impact of Migration Flows: Effects on Trade, Remittances, Output, and the Labour Market. Cham: Springer International Publishing, 19-51.


● Background: Competitive Regional GE

○ Deardorff (2002). “Introduction to 2-Cone HO Equilibrium,” University of Michigan, Economics Department.

○ Bernard, Jensen and Schott (2001). “Factor Price Equality and the Economies of the United States,” NBER Working Paper, #8068.

○ Tomiura (2005). “Factor Price Equalization in Japanese Regions.” Japanese Economic Review, V.56-#4, 441-56.

○ Chiquiar (2008). “Globalization, Regional Wage Differentials and the Stolper–Samuelson Theorem: Evidence from Mexico.” Journal of International Economics, V.74-#1, 70-93.

○ Davis and Weinstein (1999). “Economic Geography and Regional Production Structure: An Empirical Investigation.” European Economic Review, V.43-#2, 379-407.

○ Bernstein and Weinstein (2002). “Do Endowments Predict the Location of Production?: Evidence from National and International Data.” Journal of International Economics, V.56-#1, 55-76.

○ Roback (1982). “Wages, Rents, and the Quality of Life.” Journal of Political Economy, V.90-#6, 1257-78.

○ Roback (1988). “Wages, Rents, and Amenities: Differences among Workers and Regions.” Economic Inquiry, V.26-#1, 23-41.

○ Bond (1993). “Trade, Factor Mobility, and Income Distribution in a Regional Model with Compensating Wage Differentials.” Regional Science and Urban Economics, V.23-#1, 67-84.

○ Bond (1993). “Labor Mobility and Wage Rate Equalization,” in R. Becker, M. Boldring, R. W. Jones and W. Thomson eds, General Equilibrium, Growth and Trade Ii. San Diego: Academic Press, 442-59.

○ Allen and Arkolakis (2014). “Trade and the Topography of the Spatial Economy.” The Quarterly Journal of Economics, V.129-#3, 1085-140.

○ Combes, Duranton and Gobillon (2008). “Spatial Wage Disparities: Sorting Matters!Journal of Urban Economics, V.63-#2, 723-42.

○ Courant and Deardorff (1992). “International Trade with Lumpy Countries.” Journal of Political Economy, V.100-#1, 198-210.

○ Deardorff (2016). “Local Import Competititon in a Lumpy Country,” Ford School Research Seminar in International Economics, #653.

○ Bernard, Robertson and Schott (2010). “Is Mexico a Lumpy Country?Review of International Economics, V.18-#5, 937-50.


● Background: How Intranationally Mobile is Labor?

○ Moretti (2011). “Local Labor Markets” in D. Card and O. Ashenfelter eds, Handbook of Labor Economics. Amsterdam: Elsevier, 1237-313.

○ Topel (1986). “Local Labor Markets.” Journal of Political Economy, V.94-#3, S111-S43.

○ Topel (1994). “Wage Inequality and Regional Labour Market Performance in the US,” in T. Tachibanaki ed Labour Market and Economic Performance: Europe, Japan and the USA. London: Palgrave Macmillan UK, 93-127.

○ Blanchard and Katz (1992). “Regional Evolutions.” Brookings Papers on Economic Activity, V.1992-#1, 1-61.

○ Decressin and Fatás (1995). “Regional Labor Market Dynamics in Europe.” European Economic Review, V.39-#9, 1627-55.

○ Bound and Holzer (2000). “Demand Shifts, Population Adjustments, and Labor Market Outcomes During the 1980s.” Journal of Labor Economics, V.18-#1, 20-54.

○ Feyrer, Sacerdote and Stern. (2007). “Did the Rust Belt Become Shiny? A Study of Cities and Counties That Lost Steel and Auto Jobs in the 1980s.” Brookings-Wharton Papers on Urban Affairs, 41-102.

○ Combes, Duranton and Gobillon (2008). “Spatial Wage Disparities: Sorting Matters!Journal of Urban Economics, V.63-#2, 723-42.

○ Saks and Wozniak (2011). “Labor Reallocation over the Business Cycle: New Evidence from Internal Migration.” Journal of Labor Economics, V.29-#4, 697-739.

○ Partridge, Rickman, Olfert and Ali (2012). “Dwindling U.S. Internal Migration: Evidence of Spatial Equilibrium or Structural Shifts in Local Labor Markets?Regional Science and Urban Economics, V.42-#1–2, 375-88.

○ Lkhagvasuren (2012). “Big Locational Unemployment Differences Despite High Labor Mobility.” Journal of Monetary Economics, V.59-#8, 798-814.

○ Molloy, Trezzi, Smith and Wozniak (2016). “Understanding Declining Fluidity in the U.S. Labor Market.” Brookings Papers on Economic Activity, V.2016-#1, 183-259.

○ Yagan (2016). “The Enduring Employment Impact of Your Great Recession Location,” UC Berkeley, Department of Economics.


● Empirics with multiple jurisdictions: Immigration, Mariel Boatlift

■ Card (1990). “The Impact of the Mariel Boatlift on the Miami Labor-Market”. Industrial & Labor Relations Review, 43(2), pp. 245-57.

■ Borjas (2015). “The Wage Impact of the Marielitos: A Reappraisal,” NBER Working Paper, #21588.

■ Peri and Yasenov (2015). “The Labor Market Effects of a Refugee Wave: Applying the Synthetic Control Method to the Mariel Boatlift,” NBER Working Paper, #21801.

○ Saiz (2003). “Room in the Kitchen for the Melting Pot: Immigration and Rental Prices.” Review of Economics and Statistics, V.85-#3, 502-21.

○ Lewis (2008). “How Did the Miami Labor Market Absorb the Mariel Immigrants?”. Federal Reserve Bank of Philadelphia Working Paper: 04-3.

○ Card (2001). “Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration.” Journal of Labor Economics, 19(1), 22-64.

○ Hatton and Tani (2005). “Immigration and Inter-Regional Mobility in the UK, 1982-2000.” Economic Journal, 115(507), F342-F58.

○ Borjas (2006). “Native Internal Migration and the Labor Market Impact of Immigration.” Journal of Human Resources, 41(2), 221-58.

○ Peri and Sparber (2011). “Assessing Inherent Model Bias: An Application to Native Displacement in Response to Immigration.” Journal of Urban Economics, 69(1), 82-91.


● Empirics with multiple jurisdictions: Trade, the China shock

■ Autor, Dorn and Hanson (2013). “The China Syndrome: Local Labor Market Effects of Import Competition in the United States.” American Economic Review, V.103-#6, 2121-68.

○ Chetverikov, Larsen and Palmer. (2016). “IV Quantile Regression for Group-Level Treatments, with an Application to the Distributional Effects of Trade.” Econometrica, V.84-#2, 809-33.

■ Caliendo, Dvorkin and Parro (2015). “The Impact of Trade on Labor Market Dynamics,” NBER Working Paper, #21149.

○ Costa, Garred and Pessoa (2016). “Winners and Losers from a Commodities-for-Manufactures Trade Boom.” Journal of International Economics, V.102, 50-69. [Brazil case]

○ Pierce and Schott (2016). “The Surprisingly Swift Decline of U.S. Manufacturing Employment.” American Economic Review, V.106-#7, 1632-62.

○ Hakobyan, Shushanik and John McLaren (2016). “Looking for Local Labor-Market Effects of NAFTA.” Review of Economics and Statistics, V.98-#4, 728-41.

○ Dauth, Findeisen and Suedekum (2014). “The Rise of the East and the Far East: German Labor Markets and Trade Integration.” Journal of the European Economic Association, V.12-#6, 1643-75.

○ Kemeny and Rigby (2012). “Trading Away What Kind of Jobs? Globalization, Trade and Tasks in the US Economy.” Review of World Economics, V.148-#1, 1-16.

○ Becker and Muendler (2015). “Trade and Tasks: An Exploration over Three Decades in Germany.” Economic Policy, V.30-#84, 589-641.

○ Magyari (2017). “Firm Reorganization, Chinese Imports, and US Manufacturing Employment,” Economics Department, Columbia University.


Topic III. Trade and Unemployment

● Minimum Wages and Unemployment in Competitive GE

○ Brecher (1974). “Minimum Wage Rates and the Pure Theory of International Trade”. Quarterly Journal of Economics; V.88-#1, pp. 98-116.

○ Schweinberger (1978). “Employment Subsidies and the Theory of Minimum Wage Rates in General Equilibrium”. Quarterly Journal of Economics; V.92-#3, pp. 361-374.

■ Davis (1998). “Does European Unemployment Prop Up American Wages? National Labor Markets and Global Free Trade”. American Economic Review; V.88-#3, pp. 478-494.

 ○ Harris and Todaro (1970). “Migration, Unemployment and Development: A Two-Sector Analysis.” American Economic Review, V.60-#1, 126-42.

○ Corden and Findlay (1975). “Urban Unemployment, Intersectoral Capital Mobility and Development Policy.” Economica, V.42-#165, 59-78.

● Unions and Unemployment in Competitive GE

○ Creedy and McDonald. (1991). “Models of Trade Union Behaviour: A Synthesis.” Economic Record, V.67-#4, 346-59.

○ Johnson and P. Mieszkowski (1970). “The Effects of Unionization on the Distribution of Income: A General Equilibrium Approach”. Quarterly Journal of Economics; V.84-#4, pp. 539-561.

○ Jones (1971). “Distortions in Factor Markets and General Equilibrium Model of Production.” Journal of Political Economy, V.79-#3, 437-59.

○ Diewert (1974). “The Effects of Unionization on Wages and Employment: A General Equilibrium Analysis”. Economic Inquiry; V.12-/3, pp. 319-339.

○ Hill (1984). “Comparative Statics in General Equilibrium Models with a Unionized Sector”. Journal of International Economics; V.16-#3/4, pp. 345-356.

○ Brecher and Long (1989). “Trade Unions in an Open Economy: A General Equilibrium Analysis”. Economic Record; V.65-#190, pp. 234-239.

○ Grossman (1984). “International Competition and the Unionized Sector”. Canadian Journal of Economics; V.17-#3, pp. 541-556.

○ Gaston and Trefler (1995). “Union Wage Sensitivity to Trade and Protection: Theory and Evidence.” Journal of International Economics, V.39-#1–2, 1-25.


● Implicit Contracts and Unemployment in Competitive GE

○ Matusz (1985). “The Heckscher-Ohlin-Samuelson Model with Implicit Contracts”. Quarterly Journal of Economics; V.100-#?, pp. 1313-1329.

○ Matusz (1986). “Implicit Contracts, Unemployment and International Trade”. Economic Journal; V.96-#?, pp. 307-322.


● Efficiency Wages, Monitoring & Unemployment

○ Shapiro and Stiglitz (1984). “Equilibrium Unemployment as a Worker Discipline Device.” The American Economic Review, V.74-#3, 433-44.

○ Brecher (1992). “An Efficiency-Wage Model with Explicit Monitoring: Unemployment and Welfare in an Open Economy”. Journal of International Economics; V.32-#1/2, pp. 179-191.

○ Brecher and Choudhri (1994). “Pareto Gains from Trade, Reconsidered: Compensating for Jobs Lost”. Journal of International Economics; V.36-#3/4, pp. 223-238.

○ Matusz (1996). “International Trade, the Division of Labor, and Unemployment”. International Economic Review; V.37-#1, pp. 71-84.

○ Matusz (1998). “Calibrating the Employment Effects of Trade.” Review of International Economics, V.64-#4, 592-603.

○ Brecher and Chen (2010). “Unemployment of Skilled and Unskilled Labor in an Open Economy: International Trade, Migration, and Outsourcing.” Review of International Economics, V.18-#5, 990-1000.


● Fair Wages and Unemployment in Competitive GE

■ Akerlof and Yellen (1990). “The Fair Wage-Effort Hypothesis and Unemployment.” Quarterly Journal of Economics, V.105-#2, 255-83.

■ Kreickemeier and Nelson (2006). “Fair Wages, Unemployment and Technological Change in a Global Economy.” Journal of International Economics, V.70-#2, 451-69.

■ Kreickemeier (2009). “Trade, Technology, and Unemployment: The Role of Endogenous Skill Formation.” Canadian Journal of Economics, V.42-#2, 639-64.


● Search Unemployment in Competitive GE

■ Davidson, Martin and Matusz (1988). “The Structure of Simple General Equilibrium-Models with Frictional Unemployment.” Journal of Political Economy, V.96-#6, 1267-93.

■ Davidson, Martin and Matusz. (1991). “Multiple Free Trade Equilibria in Micro Models of Unemployment.” Journal of International Economics, V.31-#1-2, 157-69.

○ Davidson, Martin and Matusz (1994). “Jobs and Chocolate: Samuelsonian Surpluses in Dynamic Models of Unemployment.” Review of Economic Studies, V.61-#1, 173-92.

○ Davidson, Martin and Matusz (1999). “Trade and Search Generated Unemployment.” Journal of International Economics, V.48-#2, 271-99.

■ Hosios (1990). “Factor Market Search and the Structure of Simple General Equilibrium Models.” Journal of Political Economy, V.98-#2, 325-55.


Topic IV. Extending the Model to Heterogeneous Agents

● Heterogeneous Households: Heterogeneous Factor Endowments

■ Lloyd, (2000). “Generalizing the Stolper–Samuelson Theorem: A Tale of Two Matrices.” Review of International Economics, V.8-#4, 597-613.


● Heterogeneous Households: Nonhomothetic Preferences

■ Francois and Kaplan (1996). “Aggregate Demand Shifts, Income Distribution, and the Linder Hypothesis.” The Review of Economics and Statistics, V.78-#2, 244-50.

■ Nigai (2016). “On Measuring the Welfare Gains from Trade under Consumer Heterogeneity.” The Economic Journal, V.126-#593, 1193-237.

■ Fajgelbaum and Khandelwal (2016). “Measuring the Unequal Gains from Trade.” The Quarterly Journal of Economics, V.131-#3, 1113-80.


● Background: Complementarity, Positive Assortative Matching & Log Supermodularity

○ Topkis (1998). Supermodularity and Complementarity. Princeton, N.J.: Princeton University Press.

○ Sundaram (1996). “Supermodularity and Parametric Monotonicity,” in A First Course in Optimization Theory. New York: Cambride University Press, 253-67.

○ Amir (2005). “Supermodularity and Complementarity in Economics: An Elementary Survey.” Southern Economic Journal, V.71-#3, 636-60.

○ Smith (2011). “Frictional Matching Models.” Annual Review of Economics, V.3-#1, 319-38.

○ Chade Eeckhout and Smith (forth). “Sorting through Search and Matching Models in Economics.” Journal of Economic Literature.

○ Shimer and Smith (2000). “Assortative Matching and Search.” Econometrica, V.68-#2, 343-69.

○ Smith (2006). “The Marriage Model with Search Frictions.” Journal of Political Economy, V.114-#6, 1124-44.

○ Eeckhout and Kircher (2010). “Sorting and Decentralized Price Competition.” Econometrica, V.78-#2, 539-74.

○ Eeckhout and Kircher (2011). “Identifying Sorting—in Theory.” The Review of Economic Studies, V.78-#3, 872-906.

○ Eeckhout and Kircher (2012). “Assortative Matching with Large Firms: Span of Control over More Versus Better Workers,” Universitat Pompeu Fabra working paper.

○ Bagger and Lentz (2014). “An Empirical Model of Wage Dispersion with Sorting,” NBER Working Paper, #20031.

○ Card, Heining and Kline (2013). “Workplace Heterogeneity and the Rise of West German Wage Inequality.” The Quarterly Journal of Economics, V.128-#3, 967-1015.

○ Costinot (2009). “An Elementary Theory of Comparative Advantage.” Econometrica, V.77-#4, 1165-92.


● Globalization and Labor Markets with Worker Heterogeneity

■ Grossman and Maggi (2000). “Diversity and Trade.” American Economic Review, V.90-#5, 1255-75.

■ Grossman (2004). “The Distribution of Talent and the Pattern and Consequences of International Trade.” Journal of Political Economy, V.112-#1, 209-39.

■ Ohnsorge and Trefler (2007). “Sorting It Out: International Trade with Heterogeneous Workers.” Journal of Political Economy, V.115-#5, 868-92.

■ Costinot and Vogel (2010). “Matching and Inequality in the World Economy.” Journal of Political Economy, V.118-#4, 747-86.

■ Grossman, Helpman and Kircher (forth). “Matching, Sorting, and the Distributional Effects of International Trade.” Journal of Political Economy, V.0-#0, 000-00.


● Background: Trade with Monopolistic Competition

○ Dixit and Stiglitz (1977). “Monopolistic Competition and Optimum Product Diversity.” American Economic Review, V.67-#3, 297-308.

■ Krugman (1980). “Scale Economies, Product Differentiation, and the Pattern of Trade.” The American Economic Review, V.70-#5, 950-59.

■ Ethier (1982). “National and International Returns to Scale in the Modern Theory of International Trade.” American Economic Review, V.72-#3, 389-405.

○ Francois and Nelson (2002). “A Geometry of Specialisation.” Economic Journal, V.112-#481, 649-78.

○ Neary (2001). “Of Hype and Hyperbolas: Introducing the New Economic Geography.” Journal of Economic Literature, V.39-#2, 536-61.

○ Matsuyama (1995). “Complementarities and Cumulative Processes in Models of Monopolistic Competition.” Journal of Economic Literature, V.33-#2, 701-29.

○ Matsuyama (1997). “Complementarity, Instability, and Multiplicity.” Japanese Economic Review, V.48-#3, 240-66.

○ Mrázová and Neary (2013). “Not So Demanding: Preference Structure, Firm Behavior, and Welfare.” ms: Department of Economics, Oxford University.

■ Fajgelbaum, Grossman and Helpman (2011). “Income Distribution, Product Quality, and International Trade.” Journal of Political Economy, V.119-#4, 721-65.

○ Dinopoulos, Syropoulos, Xu and Yotov. (2011). “Intraindustry Trade and the Skill Premium: Theory and Evidence.” Journal of International Economics, V.84-#1, 15-25.

○ Romer (1987). “Growth Based on Increasing Returns Due to Specialization.” The American Economic Review, V.77-#2, 56-62.

○ Romer (1990). “Endogenous Technological Change.” Journal of Political Economy, V.98-#5, S71-S102.


● Background: How Heterogeneous Are Firms?

○ Bernard, Jensen, Redding and Schott (2007). “Firms in International Trade.” Journal of Economic Perspectives, V.21-#3, 105-30.

○ Bernard, Jensen, Redding and Schott (2009). “The Margins of US Trade.” American Economic Review, V.99-#2, 487-93.

○ Bernard, Jensen and Schott (2009). “Importers, Exporters and Multinationals: A Portrait of Firms in the US That Trade Goods,” in T. Dunne, J. B. Jensen and M. J. Roberts eds, Producer Dynamics: New Evidence from Micro Data. Chicago: University of Chicago Press/NBER, 513-52.

○ Bernard, Jensen, Redding and Schott (2012). “The Empirics of Firm Heterogeneity and International Trade.” Annual Review of Economics, V.4, 283-313.

○ Mayer and Ottaviano. (2008). “The Happy Few: The Internationalisation of European Firms.” Intereconomics, V.43-#3, 135-48.

○ Eaton, Kortum and Kramarz. (2011). “An Anatomy of International Trade: Evidence from French Firms.” Econometrica, V.79-#5, 1453-98.

○ Wagner (2007). “Exports and Productivity: A Survey of the Evidence from Firm-Level Data.” World Economy, V.30-#1, 60-82.


● Globalization and Labor Markets with Firm Heterogeneity

■ Melitz (2003). “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity.” Econometrica, V.71-#6, 1695-725.

■ Demidova, and Rodríguez-Clare (2013). “The Simple Analytics of the Melitz Model in a Small Economy.” Journal of International Economics, V.90-#2, 266-72.

■ Bernard, Redding and Schott (2007). “Comparative Advantage and Heterogeneous Firms.” Review of Economic Studies, V.74-#1, 31-66.

○ Helpman, Melitz and Rubinstein (2008). “Estimating Trade Flows: Trading Partners and Trading Volumes.” Quarterly Journal of Economics, V.123-#2, 441-87.

○ Chaney (2008). “Distorted Gravity: The Intensive and Extensive Margins of International Trade.” American Economic Review, V.98-#4, 1707-21

○ Santos Silva. and Tenreyro (2015). “Trading Partners and Trading Volumes: Implementing the Helpman–Melitz–Rubinstein Model Empirically.” Oxford Bulletin of Economics and Statistics, V.77-#1, 93-105.

○ Balistreri, Hillberry and Rutherford (2011). “Structural Estimation and Solution of International Trade Models with Heterogeneous Firms.” Journal of International Economics, V.83-#2, 95-108.

■ Helpman and Itskhoki (2010). “Labour Market Rigidities, Trade and Unemployment.” Review of Economic Studies, V.77-#3, 1100-37.

■ Felbermayr, Prat and Schmerer (2011). “Trade and Unemployment: What Do the Data Say?European Economic Review, V.55-#6, 741-58.

○ Felbermayr, Prat and Schmerer (2011). “Globalization and Labor Market Outcomes: Wage Bargaining, Search Frictions, and Firm Heterogeneity.” Journal of Economic Theory, V.146-#1, 39-73.

■ Trefler (2004). “The Long and Short of the Canada – U.S. Free Trade Agreement.” American Economic Review, V.94-#4, 870-95.

○ Kasahara and Lapham (2013). “Productivity and the Decision to Import and Export: Theory and Evidence.” Journal of International Economics, V.89-#2, 297-316.

○ Uysal, Yotov and Zylkin (2015). “Firm Heterogeneity and Trade-Induced Layoffs: An Empirical Investigation.” European Economic Review, V.75, 80-97.

■ Egger and Kreickemeier (2012). “Fairness, Trade, and Inequality.” Journal of International Economics, V.86-#2, 184-96.

■ Egger, Egger and Kreickemeier (2013). “Trade, Wages, and Profits.” European Economic Review, V.64-#0, 332-50.

○ Stijepic (2017). “Globalization, Worker Mobility and Wage Inequality.” Review of International Economics, V.25-#1, 108-31.


● Globalization & Labor Markets with Worker & Firm Heterogeneity

■ Yeaple (2005). “A Simple Model of Firm Heterogeneity, International Trade, and Wages.” Journal of International Economics, V.65-#1, 1-20.

■ Davidson, Matusz and Shevchenko (2008). “Globalization and Firm Level Adjustment with Imperfect Labor Markets.” Journal of International Economics, V.75-#2, 295-309.

■ Davidson and Matusz (2012). “A Model of Globalization and Firm-Worker Matching: How Good Is Good Enough?” International Review of Economics & Finance, V.23, 5-15.

■ Davidson, Heyman, Matusz, Sjöholm and Zhu (2014). “Globalization and Imperfect Labor Market Sorting.” Journal of International Economics, V.94-#2, 177-94.

■ Helpman, Itskhoki and Redding (2010). “Inequality and Unemployment in a Global Economy.” Econometrica, V.78-#4, 1239-83.

■ Helpman, Itskhoki, Muendler and Redding (2017). “Trade and Inequality: From Theory to Estimation.” The Review of Economic Studies, V.84-#1, pp. 357-405.

■ Amiti and Davis (2012). “Trade, Firms, and Wages: Theory and Evidence.” The Review of Economic Studies, V.79-#1, 1-36.

■ Sampson (2014). “Selection into Trade and Wage Inequality.” American Economic Journal: Microeconomics, V.6-#3, 157-202.

■ Burstein, and Vogel (forth.). “International Trade, Technology and the Skill Premium.” Journal of Political Economy.


● Globalization and Labor Markets–The Exporter Wage Premium

■ Bernard and Jensen(1995). “Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987.” Brookings Papers on Economic Activity. Microeconomics, V.1995, 67-119.

○ Bernard and Jensen (1997). “Exporters, Skill Upgrading, and the Wage Gap.” Journal of International Economics, V.42-#1–2, 3-31.

■ Verhoogen (2008). “Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector.” The Quarterly Journal of Economics, V.123-#2, 489-530.

○ Schank, Schnabel and Wagner (2007). “Do Exporters Really Pay Higher Wages? First Evidence from German Linked Employer–Employee Data.” Journal of International Economics, V.72-#1, 52-74.

○ Schank, Schnabel and Wagner (2010). “Higher Wages in Exporting Firms: Self-Selection, Export Effect, or Both? First Evidence from Linked Employer-Employee Data.” Review of World Economics, V.146-#2, 303-22.

○ Frías, Kaplan and Verhoogen (2009). “Exports and Wage Premia: Evidence from Mexican Employer-Employee Data.” Unpublished paper, Columbia University.

○ Frías, Kaplan and Verhoogen (2012). “Exports and within-Plant Wage Distributions: Evidence from Mexico.” The American Economic Review, V.102-#3, 435-40.

■ Baumgarten (2013). “Exporters and the Rise in Wage Inequality: Evidence from German Linked Employer–Employee Data.” Journal of International Economics, V.90-#1, 201-17.


Topic V. New Globalization: The “Second-Unbundling”

● Background: Value Chains and Value Added in Production

○ Johnson and Noguera (2012). “Accounting for Intermediates: Production Sharing and Trade in Value Added.” Journal of International Economics, V.86-#2, 224-36.

○ Blinder and Krueger (2013). “Alternative Measures of Offshorability: A Survey Approach.” Journal of Labor Economics, V.31-#2, S97-S128.

○ Koopman, Wang and Wei (2014). “Tracing Value-Added and Double Counting in Gross Exports.” American Economic Review, V.104-#2, 459-94.

○ Los, Timmer and de Vries (2016). “Tracing Value-Added and Double Counting in Gross Exports: Comment.” American Economic Review, V.106-#7, 1958-66.

○ Timmer, Erumban, Los, Stehrer and de Vries (2014). “Slicing up Global Value Chains.” The Journal of Economic Perspectives, V.28-#2, 99-118.

○ Los, Timmer and de Vries (2015). “How Global Are Global Value Chains? A New Approach to Measure International Fragmentation.” Journal of Regional Science, V.55-#1, 66-92.

○ Escaith (2014). “Mapping Global Value Chains and Measuring Trade in Tasks,” in B. Ferrarini and D. Hummels eds, Asia and Global Production Networks: Implications for Trade, Incomes and Economic Vulnerability. Cheltenham, UK: Edward Elgar/Asian Development Bank, 287-337.

○ Baldwin and Lopez-Gonzalez (2015). “Supply-Chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses.” The World Economy, V.38-#11, 1682-721.

○ Johnson and Noguera (forth). “A Portrait of Value Added over Four Decades.” Review of Economics and Statistics.

○ Amador and Cabral (forth). “Networks of Value-Added Trade.” The World Economy.

○ Dietzenbacher, Los, Stehrer, Timmer and de Vries. (2013). “The Construction of World Input–Output Tables in the Wiod Project.” Economic Systems Research, V.25-#1, 71-98.

○ Timmer, Dietzenbacher, Los, Stehrer and de Vries (2015). “An Illustrated User Guide to the World Input–Output Database: The Case of Global Automotive Production.Review of International Economics, V.23-#3, 575-605.

○ Timmer, Los and de Vries (2016). “The Rise of Global Manufacturing Value Chains: A New Perspective Based on the World Input-Output Database,” in D. W. Jorgenson, K. Fukao and M. P. Timmer eds, The World Economy: Growth or Stagnation? Cambridge: Cambride University Press, 535-63.

○ Calì, Francois, Hollweg, Manchin, Oberdabernig, Rojas-Romagosa, Rubinova and Tomberger (2016). “The Labor Content of Exports Database,” Policy Research Working Paper, #7615.


● Background: Is Outsourcing a Big Deal, Value Chains and Trade

○ Hummels, Ishii and Yi (2001). “The Nature and Growth of Vertical Specialization in World Trade.” Journal of International Economics, V.54-#1, 75-96.

○ Yi (2003). “Can Vertical Specialization Explain the Growth of World Trade.” Journal of Political Economy, V.111-#1, 52-102.

○ Bems, Johnson and Yi (2011). “Vertical Linkages and the Collapse of Global Trade.” The American Economic Review, V.101-#3, 308-12.

○ Bems, Johnson and Yi (2009). “The Collapse of Global Trade: Update on the Role of Vertical Linkages,” in R. E. Baldwin ed The Great Trade Collapse: Causes, Consequences and Prospects. London: Centre for Economic Policy Research, 79-86.

○ Altomonte, Di Mauro, Ottaviano, Rungi and Vicard (2012). “Global Value Chains During the Great Trade Collapse: A Bullwhip Effect?,” in S. Beugelsdijk , S. Brakman, H. van Ees and H. Garretsen eds, Firms in the International Economy: Firm Heterogeneity Meets International Business. Boston: MIT Press, 277-308.

○ Saito and Tokutsu. (2015). “Revisiting the ‘Great Trade Collapse’ with the Endogenous Input-Choice Model.” Oxford Economic Papers, V.67-#4, 1123-45.

○ Timmer, Los, Stehrer and de Vries (2016). “An Anatomy of the Global Trade Slowdown Based on the WIOD 2016 Release,” Groningen Growth and Development Center working paper,

○ Timmer, Los, Stehrer and de Vries. (2013). “Fragmentation, Incomes and Jobs: An Analysis of European Competitiveness.” Economic Policy, V.28-#76, 613-61.


● HOS Outsourcing

■ Deardorff (2001). “Fragmentation in Simple Trade Models.” The North American Journal of Economics and Finance, V.12-#2, 121-37.

■ Deardorff (2001). “Fragmentation across Cones,” in S. W. Arndt and H. Kierzkowski eds, Fragmentation: New Production Patterns in the World Economy. Oxford: Oxford University Pres, 35-51.

○ Jones and Kierzkowski (2004). “Globalization and the Consequences of International Fragmentation,” in G. A. Calvo, R. Dornbusch and M. Obstfeld eds, Money, Capital Mobility, and Trade: Essays in Honor of Robert A. Mundell. Cambridge, MA: MIT Press, 365-83.

■ Kohler (2003). “The Distributional Effects of International Fragmentation.” German Economic Review, V.4-#1, 89-120.

■ Kohler (2004). “International Outsourcing and Factor Prices with Multistage Production.” The Economic Journal, V.114-#494, C166-C85.

○ Egger and Egger (2005). “Labor Market Effects of Outsourcing under Industrial Interdependence.” International Review of Economics & Finance, V.14-#3, 349-63.


● Outsourcing and Unemployment with Competitive Product Markets

■ Egger and Kreickemeier (2008). “International Fragmentation: Boon or Bane for Domestic Employment?European Economic Review, V.52-#1, 116-32.

○ Egger and Egger (2003). “Outsourcing and Skill-Specific Employment in a Small Economy: Austria after the Fall of the Iron Curtain.” Oxford Economic Papers, V.55-#4, 625-43.

○ Ranjan (2013). “Offshoring, Unemployment, and Wages: The Role of Labor Market Institutions.” Journal of International Economics, V.89-#1, 172-86.


● Economics of Value Chains

■ Feenstra and Hanson (1999). “The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1979-1990.” The Quarterly Journal of Economics, V.114-#3, 907-40.

■ Ethier (2005). “Globalization, Globalisation: Trade, Technology, and Wages.” International Review of Economics & Finance, V.14-#3, 237-58.

■ Costinot, Vogel and Wang (2013). “An Elementary Theory of Global Supply Chains.” The Review of Economic Studies, V.80-#1, 109-44.

■ Costinot, Vogel and Wang (2012). “Global Supply Chains and Wage Inequality.” The American Economic Review, V.102-#3, 396-401.

○ Neary and Mrázová (2011). “Selection Effects with Heterogeneous Firms.” ms: Department of Economics, Oxford University.

○ Fort (2016). “Technology and Production Fragmentation: Domestic Versus Foreign Sourcing.” The Review of Economic Studies.


● Tasks and Outsourcing

■ Antràs, Garicano and Rossi-Hansberg (2006). “Offshoring in a Knowledge Economy.” Quarterly Journal of Economics, V.121-#1, 31-77.

■ Grossman and Rossi-Hansberg (2008). “Trading Tasks: A Simple Theory of Offshoring.” The American Economic Review, V.98-#5, 1978-97.

○ Grossman and Rossi-Hansberg (2012). “Task Trade between Similar Countries.” Econometrica, V.80-#2, 593-629.

■ Robert-Nicoud (2008). “Offshoring of Routine Tasks and (De)Industrialisation: Threat or Opportunity—and for Whom?Journal of Urban Economics, V.63-#2, 517-35.

○ Baldwin and Robert-Nicoud (2014). “Trade-in-Goods and Trade-in-Tasks: An Integrating Framework.” Journal of International Economics, V.92-#1, 51-62.

■ Egger, Kreickemeier and Wrona. (2015). “Offshoring Domestic Jobs.” Journal of International Economics, V.97-#1, 112-25.

 ■ Ottaviano, Peri and Wright (2013). “Immigration, Offshoring, and American Jobs.” American Economic Review, V.103-#5, 1925-59.


● Tasks, Outsourcing and Labor Market Outcomes

■ Rojas-Romagosa (2012). “Wage Inequality in Trade-in-Tasks Models,” ms: CPB Netherlands Bureau for Economic Analysis.

■ Van Reenen (2011). “Wage Inequality, Technology and Trade: 21st Century Evidence.” Labour Economics, V.18-#6, 730-41.

■ Olney (2012). “Offshoring, Immigration, and the Native Wage Distribution.” The Canadian Journal of Economics, V.45-#3, 830-56.

■ Geishecker and Görg (2008). “Winners and Losers: A Micro-Level Analysis of International Outsourcing and Wages.” The Canadian Journal of Economics, V.41-#1, 243-70.

■ Baumgarten, Geishecker and Görg (2013). “Offshoring, Tasks, and the Skill-Wage Pattern.” European Economic Review, V.61, 132-52.

■ Becker, Ekholm and Muendler (2013). “Offshoring and the Onshore Composition of Tasks and Skills.” Journal of International Economics, V.90-#1, 91-106.

■ Sethupathy (2013). “Offshoring, Wages, and Employment: Theory and Evidence.” European Economic Review, V.62, 73-97.

■ Goos, Manning and Salomons (2014). “Explaining Job Polarization: Routine-Biased Technological Change and Offshoring.” American Economic Review, V.104-#8, 2509-26.

■ Ebenstein, McMillan and Phillips (2013). “Estimating the Impact of Trade and Offshoring on American Workers Using the Current Population Surveys.” Review of Economics and Statistics, V.96-#4, 581-95.

■ Hummels, Jørgensen, Munch and Xiang (2014). “The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data.” American Economic Review, V.104-#6, 1597-629.

■ Wright (2014). “Revisiting the Employment Impact of Offshoring.” European Economic Review, V.66, 63-83.

■ Artuç and McLaren (2015). “Trade Policy and Wage Inequality: A Structural Analysis with Occupational and Sectoral Mobility.” Journal of International Economics, V.97-#2, 278-94.

■ Burstein, Hanson, Tian and Vogel (2016). “Immigration, Occupations, and Local Labor Markets: Theory and Evidence for the U.S.,” Columbia University, Department of Economics,


● Service Outsourcing

■ Jensen and Kletzer (2005). “Tradable Services: Understanding the Scope and Impact of Services Offshoring.” Brookings Trade Forum, 75-133.

■ Trefler (2005). “Service Offshoring: Threats and Opportunities.” Brookings Trade Forum, 35-73.

■ Francois and Hoekman (2010). “Services Trade and Policy.” Journal of Economic Literature, V.48-#3, 642-92.

■ Amiti and Wei (2005). “Fear of Service Outsourcing: Is It Justified?Economic Policy, V.20-#42, 308-47.

■ Amiti and Wei (2009). “Service Offshoring and Productivity: Evidence from the US.World Economy, V.32-#2, 203-20.

■ Crinò (2010). “Service Offshoring and White-Collar Employment.” The Review of Economic Studies, V.77-#2, 595-632.

■ Criscuolo and Garicano (2010). “Offshoring and Wage Inequality: Using Occupational Licensing as a Shifter of Offshoring Costs.” The American Economic Review, V.100-#2, 439-43.

■ Hijzen, Pisu, Upward and Wright (2011). “Employment, Job Turnover, and Trade in Producer Services: Uk Firm-Level Evidence.” The Canadian Journal of Economics, V.44-#3, 1020-43.

■ Liu and Trefler (2011). “A Sorted Tale of Globalization: White Collar Jobs and the Rise of Service Offshoring,” NBER Working Paper, #17559.

■ Geishecker and Görg (2013). “Services Offshoring and Wages: Evidence from Micro Data.” Oxford Economic Papers, V.65-#1, 124-46.

○ Jensen and Kletzer (2010). “Measuring Tradable Services and the Task Content of Offshorable Services Jobs,” in K. G. Abraham, J. R. Spletzer and M. Harper eds, Labor in the New Economy. Chicago: University of Chicago Press, 309-35.

○ Breinlich and Criscuolo (2011). “International Trade in Services: A Portrait of Importers and Exporters.” Journal of International Economics, V.84-#2, 188-206.

○ Francois, Manchin and Tomberger (2015). “Services Linkages and the Value Added Content of Trade.” The World Economy, V.38-#11, 1631-49.

○ Levy and Goelman (2005). “Offshoring and Radiology.” Brookings Trade Forum, 411-23.


Topic VI. Globalization and Inequality between Nations

 ● Asymmetric Globalization Effects: Static, DFS

■ Dornbusch, Fischer and Samuelson (1977). “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods.” The American Economic Review, V.67-#5, 823-39.

■ Matsuyama (2000). “A Ricardian Model with a Continuum of Goods under Nonhomothetic Preferences: Demand Complementarities, Income Distribution, and North-South Trade.” Journal of Political Economy, V.108-#6, 1093-120.

■ Matsuyama (2007). “Beyond Icebergs: Towards a Theory of Biased Globalization.” The Review of Economic Studies, V.74-#1, 237-53.

○ Stibora and de Vaal (2007). “Trade Policy in a Ricardian Model with a Continuum of Goods under Nonhomothetic Preferences.” Journal of Development Economics, V.84-#1, 350-77.

■ Samuelson (2004). “Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization.” Journal of Economic Perspectives, V.18-#3, 135-46.

■ Deardorff (2006). “Comment on Mankiw and Swagel, ‘The Politics and Economics of Offshore Outsourcing’.” Journal of Monetary Economics, V.53-#5, 1057-61.

■ Bitzer, Görg and Schrörder (2012). “Can Trade Really Hurt? An Empirical Follow-up on Samuelson’s Controversial Paper.” Economic Inquiry, V.50-#3, 724-38.


● Trade with Generalized Oligopoly

○ Neary (2003). “Globalization and Market Structure.” Journal of the European Economic Association, V.1-#2-3, 245-71.

○ Neary (2010). “Two and a Half Theories of Trade.” World Economy, V.33-#1, 1-19.

■ Neary (2016). “International Trade in General Oligopolistic Equilibrium.” Review of International Economics, V.24-#4, 669-98.

■ Neary (2002). “Foreign Competition and Wage Inequality.” Review of International Economics, V.10-#4, 680-93.

■ Bastos and Kreickemeier (2009). “Unions, Competition and International Trade in General Equilibrium.” Journal of International Economics, V.79-#2, 238-47.

■ Bastos and Straume (2012). “Globalization, Product Differentiation, and Wage Inequality.” Canadian Journal of Economics, V.45-#3, 857-78.

■ Egger and Etzel (2012). “The Impact of Trade on Employment, Welfare, and Income Distribution in Unionized General Oligopolistic Equilibrium.” European Economic Review, V.56-#6, 1119-35.

■ Kreickemeier and Meland (2013). “Non-Traded Goods, Globalization and Union Influence.” Economica, V.80-#320, 774-92.


● Asymmetric Globalization Effects: Static, Eaton-Kortum

■ Eaton and Kortum (2002). “Technology, Geography, and Trade.” Econometrica, V.70-#5, 1741-79.

○ Alvarez and Lucas (2007). “General Equilibrium Analysis of the Eaton–Kortum Model of International Trade.” Journal of Monetary Economics, V.54-#6, 1726-68.

○ Fieler (2011). “Nonhomotheticity and Bilateral Trade: Evidence and a Quantitative Explanation.” Econometrica, V.79-#4, 1069-101.

■ di Giovanni, Levchenko and Zhang (2014). “The Global Welfare Impact of China: Trade Integration and Technological Change.” American Economic Journal: Macroeconomics, V.6-#3, 153-83.

○ Caliendo, Parro, Rossi-Hansberg and Sarte (2014). “The Impact of Regional and Sectoral Productivity Changes on the US Economy,” NBER Working Paper, #20168.


● Asymmetric Globalization Effects: New Economic Geography

■ Krugman (1991). “Increasing Returns and Economic Geography.” Journal of Political Economy, V.99-#3, 483-99.

■ Krugman and Venables (1995). “Globalization and the Inequality of Nations.” Quarterly Journal of Economics, V.110-#4, 857-80.

■ Baldwin, Martin and Ottaviano (2001). “Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs.” Journal of Economic Growth, V.6-#1, 5-37.

■ Redding and Venables (2004). “Economic Geography and International Inequality.” Journal of International Economics, V.62-#1, 53-82.

■ Glaeser and Kohlhase (2004). “Cities, Regions and the Decline of Transport Costs.” Papers in Regional Science, V.83-#1, 197-228.

■ Duranton and Storper (2008). “Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs.” Canadian Journal of Economics, V.41-#1, 292-319.

■ Baldwin and Venables (2013). “Spiders and Snakes: Offshoring and Agglomeration in the Global Economy.” Journal of International Economics, V.90-#2, 245-54.


● NEG and Offshoring

■ Baldwin and Okubo (2006). “Heterogeneous Firms, Agglomeration and Economic Geography: Spatial Selection and Sorting.” Journal of Economic Geography, V.6-#3, 323-46.

■ Baldwin and Okubo (2014). “International Trade, Offshoring and Heterogeneous Firms.” Review of International Economics, V.22-#1, 59-72.


Topic VII. Globalization & the Spatial Division of Labor

● The New Economic Geography

■ Brakman, Garretsen and Schramm (2006). “Putting New Economic Geography to the Test: Free-Ness of Trade and Agglomeration in the EU Regions.” Regional Science and Urban Economics, V.36-#5, 613-35.

○ Desmet and Rossi-Hansberg (2014). “Spatial Development.” American Economic Review, V.104-#4, 1211-43.

■ Coşar and Fajgelbaum. (2016). “Internal Geography, International Trade, and Regional Specialization.” American Economic Journal: Microeconomics, V.8-#1, 24-56.

○ Diamond (2016). “The Determinants and Welfare Implications of US Workers’ Diverging Location Choices by Skill: 1980-2000.” American Economic Review, V.106-#3, 479-524.


● NEG, Cities and the Spatial Distribution of Labor

○ Brueckner, Thisse, and Zenou (2002). “Local Labor Markets, Job Matching, and Urban Location.” International Economic Review, V.43-#1, 155-71.

○ Davis and Weinstein. (2002). “Bones, Bombs, and Break Points: The Geography of Economic Activity.” The American Economic Review, V.92-#5, 1269-89.

○ Davis and Weinstein (2008). “A Search for Multiple Equilibria in Urban Industrial Structure.” Journal of Regional Science, V.48-#1, 29-65.

○ Duranton (2007). “Urban Evolutions: The Fast, the Slow, and the Still.” The American Economic Review, V.97-#1, 197-221.

■ Andersson, Burgess and Lane (2007). “Cities, Matching and the Productivity Gains of Agglomeration.” Journal of Urban Economics, V.61-#1, 112-28.

○ Combes, Duranton Gobillon, Puga and Roux (2012). “The Productivity Advantages of Large Cities: Distinguishing Agglomeration from Firm Selection.Econometrica, V.80-#6, 2543-94.

○ Young (2013). “Inequality, the Urban-Rural Gap, and Migration.” The Quarterly Journal of Economics, V.128-#4, 1727-85.


● Income distribution in a NEG framework

■ Hanson (1997). “Increasing Returns, Trade and the Regional Structure of Wages.” The Economic Journal, V.107-#440, 113-33.

■ Chiquiar (2005). “Why Mexico’s Regional Income Convergence Broke Down.” Journal of Development Economics, V.77-#1, 257-75.

■ Epifani and Gancia (2005). “Trade, Migration and Regional Unemployment.” Regional Science and Urban Economics, V.35-#6, 625-44.

■ Redding (2016). “Goods Trade, Factor Mobility and Welfare.” Journal of International Economics, V.101, 148-67.

○ Venables (2005). “Spatial Disparities in Developing Countries: Cities, Regions, and International Trade.” Journal of Economic Geography, V.5-#1, 3-21.


Topic VIII. Indirect Effects

● Unions and Income Distribution

○ Fortin and Lemieux (1997). “Institutional Changes and Rising Wage Inequality: Is There a Linkage?Journal of Economic Perspectives, V.11-#2, 75-96.

○ Lemieux (1998). “Estimating the Effects of Unions on Wage Inequality in a Panel Data Model with Comparative Advantage and Nonrandom Selection.” Journal of Labor Economics, V.16-#2, 261-91.

○ Acemoglu, Aghion and Violante (2001). “Deunionization, Technical Change and Inequality.” Carnegie-Rochester Conference Series on Public Policy, V.55-#1, 229-64.

○ Card (2001). “The Effect of Unions on Wage Inequality in the U.S. Labor Market.” ILR Review, V.54-#2, 296-315.

○ Card, Lemieux and Riddell (2004). “Unions and Wage Inequality.” Journal of Labor Research, V.25-#4, 519-59.

○ Firpo, Fortin and Lemieux (2009). “Unconditional Quantile Regressions.” Econometrica, V.77-#3, 953-73.


● Globalization and Unions

■ Wallerstein and Western. (2000). “Unions in Decline? What Has Changed and Why.” Annual Review of Political Science, V.3, 355-77.

■ Scruggs and Lange. (2002). “Where Have All the Members Gone? Globalization, Institutions, and Union Density.” The Journal of Politics, V.64-#1, 126-53.

■ Ebbinghaus (2002). “Globalization and Trade Unions: A Comparative-Historical Examination of the Convergence Thesis”. Économie appliquée, V55-#2, pp. 121-139.

○ Piazza (2005). “Globalizing Quiescence: Globalization, Union Density and Strikes in 15 Industrialized Countries.” Economic and Industrial Democracy, V.26-#2, 289-314.

○ Raess and Burgoon. (2006). “The Dogs That Sometimes Bark: Globalization and Works Council Bargaining in Germany.” European Journal of Industrial Relations, V.12-#3, 287-309.

○ Baccaro and Rei (2007). “Institutional Determinants of Unemployment in OECD Countries: Does the Deregulatory View Hold Water?International Organization, V.61-#3, 527-69.

○ Oesch (2015). “Occupational Structure and Labor Market Change in Western Europe since 1990”. Chapter 4 in Beramendi, Häusermann, Kitschelt & Kriesi (2015). The Politics of Advanced Capitalism. Cambridge: Cambridge University Press.

○ Hassel (2015). “Trade Unions and the Future of Democratic Capitalism”. Chapter 9 in Beramendi, Häusermann, Kitschelt & Kriesi (2015). The Politics of Advanced Capitalism. Cambridge: Cambridge University Press.


● Welfare state and income distribution

○ Esping-Andersen and Myles (2011). “Economic Inequality and the Welfare State,” in B. Nolan, W. Salverda and T. Smeeding eds, Oxford Handbook of Economic Inequality. Oxford: Oxford University Pres, 639-64.

○ Acemoglu, Naidu, Restrepo and Robinson (2015). “Democracy, Redistribution, and Inequality,” in Atkinson and Bourguignon eds, Handbook of Income Distribution. Elsevier, 1885-966.

○ Marx, Nolan and Olivera (2015). “The Welfare State and Antipoverty Policy in Rich Countries,” in Atkinson and Bourguignon eds, Handbook of Income Distribution. Elsevier, 2063-139.

○ Iversen and Stephens (2008). “Partisan Politics, the Welfare State, and Three Worlds of Human Capital Formation.” Comparative Political Studies, V.41-#4-5, 600-37.

○ Bradley, Huber, Moller, Nielsen, and Stephens (2003). “Distribution and Redistribution in Post-Industrial Democracies”. World Politics; V.55-#2, pp. 193-228.

○ Huber and Stephens (2014). “Income Inequality and Redistribution in Post-Industrial Democracies: Demographic, Economic and Political Determinants.” Socio-Economic Review, V.12-#2, 245-67.

○ Cameron (1978). “Expansion of the Public Economy – Comparative Analysis.” American Political Science Review, V.72-#4, 1243-61.

○ Iversen and Cusack (2000). “The Causes of Welfare State Expansion – Deindustrialization or Globalization?” World Politics, V.52-#3, 313-49.

○ Rodrik (1998). “Why Do More Open Economies Have Bigger Governments?Journal of Political Economy, V.106-#5, 997-1032.

○ Anderson and Pontusson (2007). “Workers, Worries and Welfare States: Social Protection and Job Insecurity in 15 OECD Countries.” European Journal of Political Research, V.46-#2, 211-35.

○ Epifani and Gancia (2009). “Openness, Government Size and the Terms of Trade.” The Review of Economic Studies, V.76-#2, 629-68.

○ Atkinson (2015). Inequality: What Can Be Done? Boston: Harvard University Press.


● Globalization and the Welfare State

○ Devereux, Griffith and Klemm (2002). “Corporate Income Tax Reforms and International Tax Competition.” Economic Policy, #35, 449-495.

○ Hays (2003). “Globalization and Capital Taxation in Consensus and Majoritarian Democracies.” World Politics, V.56-#1, 79-113.

○ Stewart and Webb (2006). “International Competition in Corporate Taxation: Evidence from the OECD Time Series”. Economic Policy; V.21-#45, pp. 153-201.

■ Devereux, Lockwood and Redoano (2008). “Do Countries Compete over Corporate Tax Rates?Journal of Public Economics, V.92-#5-6, 1210-35.

■ Egger, Nigai and Strecker (2016). “The Taxing Deed of Globalization,” CEPR Discussion Paper, #11259.

○ Kleven, Henrik Jacobsen. (2014). “How Can Scandinavians Tax So Much?Journal of Economic Perspectives, V.28-#4, 77-98.

■ Gaston and Nelson (2004). “Structural Change and the Labor Market Effects of Globalization.” Review of International Economics, V.12-#5, 769-92.

○ Walter (2010). “Globalization and the Welfare State: Testing the Microfoundations of the Compensation Hypothesis”. International Studies Quarterly, V.54-#2, pp. 403-26.

○ Burgoon (2013). “Inequality and Anti-Globalization Backlash by Political Parties.” European Union Politics, V.14-#3, 408-35.

■ Feler and Senses (forth). “Trade Shocks and the Provision of Local Public Goods.” American Economic Journal: Economic Policy.


● Immigration and the Welfare State

■ Burgoon (2014). “Immigration, Integration, and Support for Redistribution in Europe.” World Politics, V.66-#03, 365-405.

■ Dancygier & Walter (2015). “Globalization, Labor Market Risks, and Class Cleavages”. Chapter 5 in BHKK.

○ Shayo (2009). “A Model of Social Identity with an Application to Political Economy: Nation, Class, and Redistribution.” American Political Science Review, V.103-#2, 147-74.

○ Portes and Vickstrom. (2011). “Diversity, Social Capital, and Cohesion.” Annual Review of Sociology, V.37-#1, 461-79.

○ Dustmann, Fabbri and Preston (2011). “Racial Harassment, Ethnic Concentration, and Economic Conditions.” The Scandinavian Journal of Economics, V.113-#3, 689-711.

○ Lipsmeyer and Zhu (2011). “Immigration, Globalization, and Unemployment Benefits in Developed EU States.” American Journal of Political Science, V.55-#3, 647-64.

○ Jeong, Miller, Schofield and Sened. (2011). “Cracks in the Opposition: Immigration as a Wedge Issue for the Reagan Coalition.” American Journal of Political Science, V.55-#3, 511-25.

○ Dahlberg, Edmark, Lundqvist (2012). “Ethnic Diversity and Preferences for Redistribution.” Journal of Political Economy, V.120-#1, 41-76.

■ Gaston and Rajaguru (2013). “International Migration and the Welfare State Revisited.” European Journal of Political Economy, V.29-#0, 90-101.