TRADE, WAGES, AND PRODUCTIVITY

Kristian Behrens, Giordano Mion, Yasusada Murata and Jens Südekum
Authors registered in the RePEc Author Service: Jens Suedekum

International Economic Review, 2014, vol. 55, issue 4, 1305-1348

Abstract: We develop a general equilibrium monopolistic competition model in which wages, productivity, consumption diversity, and markups respond to trade integration. We structurally estimate the model and simulate the impacts of removing all trade barriers generated by the Canada–U.S. border. Firm selection gets tougher by 8.09% in Canada and by 0.80% in the United States. Markups that consumers face, which are central to welfare, fall by up to 12.11% in Canadian provinces and by up to 2.82% in U.S. states. However, changes in markups measured at the firm level are ambiguous, thus providing a different piece of information.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://doi.org/10.1111/iere.12091

Related works:
Working Paper: Trade, Wages, and Productivity (2012)
Working Paper: Trade, Wages and Productivity (2009)
Working Paper: Trade, Wages and Productivity (2009)
Working Paper: Trade, wages, and productivity (2009)
Working Paper: Trade, wages and productivity (2009)
Working Paper: Trade, wages and productivity (2009)
Working Paper: Trade, Wages, and Productivity (2008)
Working Paper: Trade, Wages, and Productivity (2008)
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