Udo Kreickemeier (University of Tuebingen, Germany) are coming to our Center of Market Studies and Spatial Economics

Research Statement of Mr. Kreickemeier:

His current research interests focus on the distributional effects of globalization, in particular he is interested in the analysis of the effects of trade and offshoring on income inequality and unemployment, both theoretically and empirically.

More detailed information can be found out on his personal web-page:

http://www.kreickemeier.de

During the visit following event is organized by CMSSE:

Tuesday, 05.11.2011

Time: 17-00 - 18-00

Venue: Rimskiy-Korsakov av., 47 (building of the bank "Saint-Petersburg bank", conference hall, 3rd floor)

Research seminar

Udo Kreickemeier (University of Tuebingen, Germany) Offshoring Domestic Jobs (with Hartmut Egger and Jens Wrona)

We 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 we show that offshoring reallocates labour towards less productive firms if offshoring costs are high, and towards more productive ones if these costs are low. Each source-country 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, creating a class of entrepreneurial ‘superstars’. All results hold in a model extension with firm-level rent sharing, which features aggregate unemployment. In this extended model, the offshoring of high-wage manufacturing jobs furthermore has non-monotonic effects on unemployment and intra-group inequality among workers.

Tuesday, 05.11.2011

Time: 17-00 - 18-00

Venue: Rimskiy-Korsakov av., 47 (building of the bank "Saint-Petersburg bank", conference hall, 3rd floor)