Does protectionism harm unskilled workers?
Sugata Marjit and
Reza Oladi ()
Economics and Politics, 2018, vol. 30, issue 3, 444-450
In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the unskilled wages. This result has interesting political‐economic implications.
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ecopol:v:30:y:2018:i:3:p:444-450
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