International Trade and Unemployment: A Quantitative Framework
| Title: | International Trade and Unemployment: A Quantitative Framework |
|---|---|
| Authors: | Benedikt Heid; Mario Larch; Jel-codes F |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/events/conferences/trade13/larch.pdf. |
| Publication Year: | 2013 |
| Collection: | CiteSeerX |
| Subject Terms: | International trade; unemployment; trade costs; structural estimation; gravity equation |
| Description: | Quantifying the welfare e ects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the e ects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor market frictions. To illustrate, we assess the e ects of trade and labor market reforms for 28 OECD countries. Welfare e ects of trade agreements are magni ed when accounting for employment changes. While employment and welfare increase in most countries, some experience higher unemployment and lower welfare. Labor market reforms in one country have small positive spillover e ects on trading partners. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.406.1441; http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/events/conferences/trade13/larch.pdf |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.406.1441; http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/events/conferences/trade13/larch.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.51893F2A |
| Database: | BASE |