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dc.contributor.authorHELPMAN, Elhanan
dc.contributor.authorITSKHOKI, Oleg
dc.contributor.authorREDDING, Stephen
dc.date.accessioned2011-06-23T09:34:52Z
dc.date.available2011-06-23T09:34:52Z
dc.date.issued2011-01-01
dc.identifier.issn1830-7736
dc.identifier.urihttp://hdl.handle.net/1814/17954
dc.description.abstractThis paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral reductions in labor market frictions increase a country's welfare, can raise or reduce its unemployment rate, yet always hurt the country's trade partner. Unemployment benefits can alleviate the distortions in a country's labor market in some cases but not in others, but they can never implement the constrained Pareto optimal allocation. We characterize the set of optimal policies, which require interventions in product and labor markets.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseries2011/03
dc.relation.ispartofseriesEUI MWP LSen
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectInequalityen
dc.subjectUnemploymenten
dc.subjectTradeen
dc.subjectLabor market policyen
dc.subjectF12en
dc.subjectF16en
dc.subjectJ64en
dc.titleTrade and Labor Market Outcomesen
dc.typeOtheren
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