Arbeitspapier

Comparative advantage and skill-specific unemployment

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the gains from trade will be distributed very unequally. While unskilled workers loose in terms of real wages and employment levels in the skilled labor intensive sector, skilled workers loose in terms of real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between sectors is much larger for skilled labor than for unskilled labor. On average, unemployment among unskilled workers increases when a skill-abundant country opens up to trade.

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1538

Klassifikation
Wirtschaft
Neoclassical Models of Trade
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade and Labor Market Interactions
Unemployment: Models, Duration, Incidence, and Job Search
Production, Pricing, and Market Structure; Size Distribution of Firms
Thema
Comparative advantage
heterogeneous firms
labor market frictions
unemployment
trade liberalization
Außenhandelsliberalisierung
Komparativer Kostenvorteil
Qualifikation
Arbeitslosigkeit
Ungelernte Arbeitskräfte
Lohnstruktur
Theorie

Ereignis
Geistige Schöpfung
(wer)
Larch, Mario
Lechthaler, Wolfgang
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Larch, Mario
  • Lechthaler, Wolfgang
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2009

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