Aufsatz in einer Fachzeitschrift
International Trade and Unemployment-the Worker-selection Effect



Details zur Publikation
Autor(inn)en:
Michaelis, J.; Pinto, M.
Publikationsjahr:
2014
Zeitschrift:
Review of International Economics
Seitenbereich:
226-252
Jahrgang/Band:
22
Erste Seite:
226
Letzte Seite:
252
ISSN:
0965-7576

Zusammenfassung, Abstract
This paper investigates the labor market effects of trade liberalization. We incorporate trade unions and heterogeneous workers into the Melitz (2003) framework. Workers differ with respect to their abilities. Our main findings are: (i) trade liberalization harms low-ability workers, they loose their job and switch to long-term unemployment (worker-selection effect); (ii) high-ability workers are better off in terms of both higher wages and higher employment; (iii) if a country is endowed with a large fraction of low-ability workers, trade liberalization leads to a rise in aggregate unemployment. In this case, trade liberalization may harm a country's welfare. (iv) The overall employment and welfare effect crucially hinges on the characteristics of the wage bargain.


Autor(inn)en / Herausgeber(innen)

Zuletzt aktualisiert 2019-24-07 um 08:55