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Labor Market Frictions, Firm Growth, and International Trade

Pablo Fajgelbaum ()

No 19492, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper develops a model to study the aggregate effects of labor market frictions in a small open economy where firms grow slowly and make fixed export investments. The model features interactions between dynamic investments in exporting and search frictions with job-to- job mobility. A calibration to Argentina's economy matching data on firm growth, worker transitions between firms, and export dynamics suggests that the gains from lowering frictions in job-to-job transitions are considerable, and may outweigh those from lowering frictions in hiring from unemployment.

JEL-codes: D92 F16 J62 L11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-dge, nep-lab and nep-lma
Date: 2013-10
Note: ITI
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