Trade and Labor Market Integration with Heterogeneous Labor

Cheng-Te Lee and Deng-Shing Huang ()
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Cheng-Te Lee: Department of International Trade, Chinese Culture University, Taiwan
Deng-Shing Huang: Institute of Economics, Academia Sinica, Taipei, Taiwan, https://www.econ.sinica.edu.tw/

No 09-A004, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan

Abstract: This paper explores the impact of labor market integration between an advanced country (North) and backward country (South) on income distribution and pattern oftrade by making use of a two-sector, competitive trade model with heterogeneous labor. We prove that, for the North, after the labor market integration, none of the workers is worse off; instead some people earn higher wages than before. And, for the South, some workers are worse off. In addition, we find that the pattern of trade for the integrated economy might reverse.

Keywords: diversity; labor market integration; pattern of trade; income distribution (search for similar items in EconPapers)
JEL-codes: F15 F22 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2009-04
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:sin:wpaper:09-a004

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