Trade, Agglomeration Effects, and Labor Markets: Theory and Evidence

Rodrigo Adao, Costas Arkolakis and Federico Esposito
Additional contact information
Rodrigo Adao: University of Chicago

No 545, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: We develop a generalized spatial competitive model with agglomeration effects and labor mobility across markets -regions and sectors-. In this environment, we characterize the key elasticities that fully determine the differential and aggregate impact of trade and other shocks on local labor markets. We show that our setup yields equivalent counterfactuals to a large class of neoclassical trade, new trade theory, new economic geography, and Roy assignment spatial models. To identify these key elasticities, we propose an empirical methodology that relies on the general equilibrium impact of exogenous trade cost shocks on trade and labor outcomes across local labor markets. We show that this methodology yields the most ecient estimator of the structural elasticities. We finally apply this estimator with disaggregated regional trade data to measure the impact of trade shocks on US local labor markets.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (13)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:red:sed018:545

Access Statistics for this paper

More papers in 2018 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().