A Note on Unemployment of Unskilled Labor due to COVID-19 led Restriction on Migration and Trade

Biswajit Mandal, Chaudhuri Saswati () and Alaka Prasad
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Chaudhuri Saswati: Department of Economics, St. Xavier’s College, Kolkata, India

Review of Economics, 2020, vol. 71, issue 3, 223-236

Abstract: To combat COVID-19 the entire world has resorted to global lockdown implying restriction on international labor migration and trade. This paper aims to check the effect of such restrictions on the unemployment of unskilled labor in the source country. In competitive general equilibrium framework with three goods and four factors, restriction on migration raises unemployment for given factor intensity. The results remain same even in a slightly different structure of the economy. In case of trade restriction, however, the rise or fall in unemployment depends on both the structure of the economy and the factor intensity assumption.

Keywords: general equilibrium; COVID-19; migration; trade; unemployment (search for similar items in EconPapers)
JEL-codes: D5 F12 F22 J6 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1515/roe-2020-0030

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