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Trade, Development and Political Economy presents: Nancy H. Chau

341 Eggers Hall

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Trade, Development and Political Economy Presents: Search, Choice of Technique and Sweatshop Jobs

Speaker: Nancy H. Chau (Cornell University)

Abstract: We integrate the Diamond and Burdett-Mortensen models of job search to account for endogenous adoption of work conditions that exact different productive efficiencies, on-the-job search capabilities, and work disutilities. The properties of equilibrium in this unified setting are examined, and the resulting insights shed new light on labor markets with jobs controversially referred to as sweatshop jobs: Can inefficient sweatshop technologies survive market selection? Do sweatshop jobs pay a compensating differential? Are sweatshop workers worse off than other workers in overall value terms? What does a ban on sweatshops mean in terms of unemployment, wages, distribution, and efficiency?

Short Bio:Nancy Chauis Professor of Economics in the Dyson School of Applied Economics and Management at Cornell. Professor Chau'sresearch interests are in international trade, regional economics, and economic development, with particular emphasis on the economics of information and uncertainty. Professor Chauwas recently awarded the Alexander von Humboldt Research Fellowship, and the first T. W. Schultz Award of the International Agricultural Economics Association. She is an Associate Editor of theAmerican Journal of Agricultural Economics, a senior fellow at the Center for Development Research, a Research Fellow at the Institute for the Study of Labor (IZA Bonn), and member of an expert panel for the Office of the UN High Commissioner for Human Rights (OHCHR). Professor Chauhas published widely, in journals such asEconomic Journal, International Economic Review, Journal of Economic Growth, Journal of Labor Economics, Journal of Public Economicsetc.

Monday, November 4, 2013
4:00 pm
341 Eggers Hall


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