Jobs, Jobs, Jobs: A "New" Perspective on Protectionism

Arnaud Costinot

Journal of the European Economic Association, 2009, vol. 7, issue 5, 1011-1041

Abstract: This paper analyzes the determinants of protectionism in a small open economy with search frictions. In this environment, jobs generate rents whose access depends on the level of trade protection. By raising the domestic price of a good, a government may attract more firms in a particular industry. This raises the probability that workers will find jobs in this sector, and in turn, will benefit from the associated rents. Though simple, this channel may help explain a variety of stylized facts on the structure of trade protection and individual trade-policy preferences. (JEL: F130, F160) (c) 2009 by the European Economic Association.

JEL-codes: F13 F16 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (26)

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