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Labour Market Imperfection and HOS Model: Some Counterintuitive Results

Sarbajit Chaudhuri ()

MPRA Paper from University Library of Munich, Germany

Abstract: This note introduces labour market imperfection in an otherwise Heckscher-Ohlin-Samuelson (HOS) model and provides a theory of unionized wage formation. It demonstrates that this framework satisfies the Stolper-Samuelson theorem and the magnification effect and that it is capable of producing certain results which are contrary to the standard HOS and the Corden and Findlay (1975) results.

Keywords: Labour market imperfection; Heckscher-Ohlin-Samuelson model; Corden and Findlay model; Foreign capital; Trade liberalization. (search for similar items in EconPapers)
JEL-codes: O17 F21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2009-05-20
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