Wage Subsidy and Sector-Specific Unemployment: A New Economic Geography Approach

Yenhuang Chen () and Lihong Zhao ()
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Yenhuang Chen: Chinese Culture University
Lihong Zhao: China HuanQiu Contracting & Engineering Corporation

Economics Bulletin, 2009, vol. 29, issue 1, 426-436

Abstract: This paper uses a new economic geography approach to examine the effects of wage subsidy, which is undertake to bolster up the industrial development. This paper also highlights the effects of trade liberalization and international capital mobility. In particular, sector-specific unemployment is introduced in the monopolistically competitive sector of the home country.

JEL-codes: F2 (search for similar items in EconPapers)
Date: 2009-03-25
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Citations: View citations in EconPapers (5)

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