This chapter reviews the new approach to international trade based on firm heterogeneity in
differentiated product markets. This approach explains a variety of features exhibited in …

This article reviews the empirical evidence on firm heterogeneity in international trade. A first
wave of empirical findings from microdata on plants and firms proposed challenges for …

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 …

This paper develops a new framework for examining the determinants of wage distributions
that emphasizes within‐industry reallocation, labor market frictions, and differences in …

In this paper, we survey the recent empirical literature on the effects of offshoring on wage,
employment, and displacement. We start with an overview of the measurement of offshoring …

Is financial health a determinant of export market participation? Is it an outcome? Using a
panel of 9292 UK manufacturing firms over the period 1993–2003, we explore the links …

Globalization has been blamed for rising inequality in rich and poor countries. Yet the views
of many protagonists in this debate are not based on evidence. To help form an evidence …

This article develops a model that incorporates workers' fair wage preferences into a general
equilibrium framework with heterogeneous firms. In a setting where the wage considered to …

This paper develops tools and techniques to analyze the determinants of factor allocation
and factor prices in economies with a large number of goods and factors. The main results of …

We introduce search unemployment into Melitz's trade model. Firms' monopoly power on
product markets leads to strategic wage bargaining. Solving for the symmetric equilibrium …