Arbeitspapier
Smoothing the adjustment to trade liberalization
We use a dynamic general equilibrium trade model with comparative advantage, heterogeneous firms, heterogeneous workers and endogenous firm entry to analyze economic policy to compensate the losers of trade liberalization and to reduce the ensuing wage inequality. We consider several instruments of economic policy: a wage tax to redistribute income between skilled and unskilled workers; sector-specific consumption taxes and profit taxes to affect inter-sectoral wage inequality; sector-specific firm entry subsidies, worker sector-migration subsidies and training subsidies to speed up the adjustment process. We find that the re-distributional and efficiency effects of these instruments differ very much. Probably the most potent tool to reduce the wage inequality after trade liberalization are training subsidies. Although the policy also generates inefficiencies because too many workers are trained, the costs of these inefficiencies are relatively low.
- Sprache
-
Englisch
- Erschienen in
-
Series: WWWforEurope Working Paper ; No. 61
- Klassifikation
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Neoclassical Models of Trade
Trade and Labor Market Interactions
Job, Occupational, and Intergenerational Mobility; Promotion
- Thema
-
Trade liberalization
wage inequality
adjustment dynamics
re-distribution
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lechthaler, Wolfgang
Mileva, Mariya
- Ereignis
-
Veröffentlichung
- (wer)
-
WWWforEurope
- (wo)
-
Vienna
- (wann)
-
2014
- Handle
- Letzte Aktualisierung
-
10.02.2023, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Lechthaler, Wolfgang
- Mileva, Mariya
- WWWforEurope
Entstanden
- 2014
Ähnliche Objekte (12)
Smoothing the adjustment to trade liberalization
Smoothing the adjustment to trade liberalization
Welfare state adjustment to new social risks in the post-crisis scenario. A review with focus on the social investment perspective
The impact of the financial-economic crisis on sustainability transitions: Financial investment, governance and public discourse
Labour Market Institutions and Regional Unemployment Disparities
Subjective well-being and socio-ecological transition
The challenges of EU governance and the quest for long-term growth
Civil society actors as drivers of socio-ecological transition? - Green spaces in European cities as laboratories of social innovation
Deepening the scope of the "economic model": Functionalities, structures, mechanisms, and institutions
Surveillance and Control of Fiscal Consolidation on a Supranational Level
Innovation in the energy sector
Modeling growth, distribution, and the environment in a stock-flow consistent framework
Smoothing the adjustment to trade liberalization
Smoothing the adjustment to trade liberalization
Welfare state adjustment to new social risks in the post-crisis scenario. A review with focus on the social investment perspective
The impact of the financial-economic crisis on sustainability transitions: Financial investment, governance and public discourse
Labour Market Institutions and Regional Unemployment Disparities
Subjective well-being and socio-ecological transition
The challenges of EU governance and the quest for long-term growth
Civil society actors as drivers of socio-ecological transition? - Green spaces in European cities as laboratories of social innovation
Deepening the scope of the "economic model": Functionalities, structures, mechanisms, and institutions
Surveillance and Control of Fiscal Consolidation on a Supranational Level
Innovation in the energy sector
Modeling growth, distribution, and the environment in a stock-flow consistent framework
Smoothing the adjustment to trade liberalization
Smoothing the adjustment to trade liberalization
Welfare state adjustment to new social risks in the post-crisis scenario. A review with focus on the social investment perspective
The impact of the financial-economic crisis on sustainability transitions: Financial investment, governance and public discourse
Labour Market Institutions and Regional Unemployment Disparities
Subjective well-being and socio-ecological transition
The challenges of EU governance and the quest for long-term growth
Civil society actors as drivers of socio-ecological transition? - Green spaces in European cities as laboratories of social innovation
Deepening the scope of the "economic model": Functionalities, structures, mechanisms, and institutions
Surveillance and Control of Fiscal Consolidation on a Supranational Level
Innovation in the energy sector