Trade and inequality in a directed search model with firm and worker heterogeneity
Moritz Ritter ()
Canadian Journal of Economics, 2015, vol. 48, issue 5, 1902-1916
This paper integrates the insight that exporting firms are typically more productive and employ higher-skilled workers into a directed search model of the labour market. The model generates a skill premium as well as residual wage inequality among identical workers. A trade liberalization increases the skill premium and likely increases residual inequality among high-skilled workers. The calibrated model generates results consistent with the prior literature examining the effect of the Canada-US Free Trade Agreement on the Canadian labour market: a significant decrease in employment in manufacturing, but only a small change in unemployment and wages.
JEL-codes: E24 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
access restricted to subscribers
Working Paper: Trade and Inequality in a Directed Search Model with Firm and Worker Heterogeneity (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:48:y:2015:i:5:p:1902-1916
Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php
Access Statistics for this article
Canadian Journal of Economics is currently edited by Katherine Cuff
More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().