Labor markets and kaleidoscopic comparative advantage

Daniel Traca

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: Capturing the notion of kaleidoscopic comparative advantage (Bhagwati, 1998), we show that international trade increases the volatility of profitability. In this framework, we address the labor market implications of an increase in openness, when insurance and credit markets are imperfect. With kaleidoscopic comparative advantage, trade raises the likelihood of firm shutdown and worker displacement, which, in equilibrium, affects wage contracts. In a simple model, we analyze the consequences for wage levels, earnings volatility, job instability, and income distribution, of the openness of previously nontraded industries to international trade.

Date: 2005-08
Note: FLWIN
References: Add references at CitEc
Citations:

Published in: Review of International Economics (2005) v.13 n° 3,p.431-444

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

Related works:
Journal Article: Labor Markets and Kaleidoscopic Comparative Advantage (2005)
Working Paper: Labor Markets and Kaleidoscopic Comparative Advantage (2000)
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:ulb:ulbeco:2013/9223

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... .ulb.ac.be:2013/9223

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().