International Trade and Labor Market Discrimination

Richard Chisik and Julian Emami Namini ()
Additional contact information
Julian Emami Namini: Erasmus University

No 43, Working Papers from Toronto Metropolitan University, Department of Economics

Abstract: We embed a competitive search model with labor market discrimination into a two-sector, two-country framework in order to analyze how labor market discrimination and international trade interact. Discrimination reduces the matching probability and output in the skill intensive differentiated-product sector so that discrimination-induced comparative advantage may overshadow technological comparative advantage in determining the pattern of trade. Trade liberalization generates a decrease in the skilled-worker wage gap in the country that is an exporter of goods from the simple sector but increases it in the country that is a net exporter of differentiated products. Trade liberalization has an opposite effect on firms. In the country that is an exporter of simple goods, trade liberalization reduces the profits of the non-discriminatory firms by more than those of the discriminatory firms.

Pages: 37 pages
Date: 2015-02
New Economics Papers: this item is included in nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.arts.ryerson.ca/economics/repec/pdfs/wp043.pdf (application/pdf)

Related works:
Journal Article: INTERNATIONAL TRADE AND LABOR‐MARKET DISCRIMINATION (2019)
Working Paper: International Trade and Labor Market Discrimination (2017)
Working Paper: International Trade and Labor Market Discrimination (2016)
Working Paper: International Trade and Labor Market Discrimination (2016)
Working Paper: International Trade and Labor Market Discrimination (2015)
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:rye:wpaper:wp043

Access Statistics for this paper

More papers in Working Papers from Toronto Metropolitan University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Doosoo Kim ().