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

Arnaud Costinot

University of California at San Diego, Economics Working Paper Series from Department of Economics, UC San Diego

Abstract: This paper analyzes the determinants of protectionism in a small open economy with search frictions. This this environment, jobs generate rents whose access depends on the level of trade protectionn. 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.

Keywords: search frictions; trade protection; trade-policy preferences (search for similar items in EconPapers)
Date: 2008-02-01
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Citations: View citations in EconPapers (1)

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Journal Article: Jobs, Jobs, Jobs: A "New" Perspective on Protectionism (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:cdl:ucsdec:qt1cp9749b

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