International Trade and Unemployment-the Worker-selection Effect

Autor:	Jochen Michaelis, Marco de Pinto
Rok vydání:	2014
Předmět:	Labour economics Harm media_common.quotation_subject Geography Planning and Development Unemployment Wage Economics Development Welfare Free trade Selection (genetic algorithm) media_common
Zdroj:	Review of International Economics. 22:226-252
ISSN:	0965-7576
DOI:	10.1111/roie.12111
Popis:	This paper investigates the labor market effects of trade liberalization. We incorporate trade unions and heterogeneous workers into the Melitz framework. Workers differ with respect to their abilities. Our main findings are: (i) trade liberalization harms low‐ability workers, they lose their job and switch to long‐term unemployment (worker‐selection effect); (ii) high‐ability workers are better off in terms of both higher wages and higher employment; (iii) if a country is endowed with a large fraction of low‐ability workers, trade liberalization leads to a rise in aggregate unemployment — in this case, trade liberalization may harm a country's welfare; (iv) the overall employment and welfare effect crucially hinges on the characteristics of the wage bargain.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::5010a24b13d7192e190016f66757b9f4 https://doi.org/10.1111/roie.12111 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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