EconPapers    
Economics at your fingertips  
 

Tariff Reforms with Rigid Wages

Rodney Falvey and Udo Kreickemeier

Chapter 4 in International Trade and Labor Markets:Welfare, Inequality and Unemployment, 2017, pp 95-116 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter analyzes the effects of tariff reforms on welfare and market access in a competitive small open economy that is characterized by involuntary unemployment due to non-market clearing wages that are fixed either in terms of the numeraire or in real terms. We show that recent tariff-reform results can be extended to integrated reforms of tariffs and the wage rate, and that the inherent tension between reforms that increase welfare and market access carries over. We also derive welfare increasing tariff-reform strategies that keep the wage rate constant, and show that this tension may be attenuated.

Keywords: International Trade; Inequality; Labor Markets; Unemployment; Offshoring (search for similar items in EconPapers)
JEL-codes: J01 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813224919_0004 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813224919_0004 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Tariff reforms with rigid wages (2009) Downloads
Working Paper: Tariff Reforms with Rigid Wages (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813224919_0004

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2025-03-23
Handle: RePEc:wsi:wschap:9789813224919_0004