International Trade and Unemployment: The Worker-Selection Effect

Marco Pinto
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Marco Pinto: IAAEU & University of Trier

Chapter Chapter 2 in International Trade and Unemployment, 2013, pp 5-32 from Springer

Abstract: Abstract The impact of trade liberalization on a country’s labor market situation is a core issue in modern trade theory. For a world with homogeneous firms, homogeneous workers and perfect competition on product and labor markets the mechanisms are well-known. However, for a world with heterogeneous firms, heterogeneous workers and imperfect competition, wage and employment effects are context-specific. Most prominent in the recent debate is Melitz (2003).

Keywords: Trade Liberalization; Trade Openness; Wage Inequality; Reservation Wage; Average Ability (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-642-33236-4_2

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DOI: 10.1007/978-3-642-33236-4_2

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