Trade in Unemployment
Celine Carrere,
Marcelo Olarreaga and
Frederic Robert-Nicoud
Papers from World Trade Institute
Abstract:
We embed a model of the labor market with sector-specific search-and-matching frictions into a Ricardian model with a continuum of goods to show that trade liberalization causes higher unemployment in countries with comparative advantage in sectors with strong labor market frictions and leads to lower unemployment in countries with comparative advantage in sectors with weaklabor market frictions. We test this prediction in a panel dataset of 97 countries during the period 1995-2009 and find that the data supports the theoretical prediction. Our results also help reconciliate the apparently contradicting evidence in the empirical literature on the impact of trade on unemployment.
Date: 2014-04-29
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://www.wti.org/media/filer_public/74/5f/745fd0 ... nt_-_nccr2014-12.pdf First version (application/pdf)
Related works:
Working Paper: Trade in Unemployment (2014) 
Working Paper: Trade in Unemployment (2014) 
Working Paper: Trade in Unemployment (2014) 
Working Paper: TRADE IN UNEMPLOYMENT (2014) 
Working Paper: Trade in Unemployment (2014) 
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:wti:papers:712
Access Statistics for this paper
More papers in Papers from World Trade Institute Contact information at EDIRC.
Bibliographic data for series maintained by Morven McLean ( this e-mail address is bad, please contact ).