Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27762 
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dc.contributor.authorFelbermayr, Gabrielen
dc.contributor.authorLarch, Marioen
dc.contributor.authorLechthaler, Wolfgangen
dc.date.accessioned2009-09-09-
dc.date.accessioned2009-09-09T11:55:26Z-
dc.date.available2009-09-09T11:55:26Z-
dc.date.issued2009-
dc.identifier.piurn:nbn:de:bsz:100-opus-3873en
dc.identifier.urihttp://hdl.handle.net/10419/27762-
dc.description.abstractWe introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention to the role of income effects and shows that bad institutions in one country worsen labor market outcomes not only in that country but also in its trading partners. This spill-over effect is conditioned by trade costs and country size: smaller and/or more centrally located nations suffer less from inefficient policies at home and are more heavily affected from spill-overs abroad than larger and/or peripheral ones. We offer empirical evidence for a panel of 20 rich OECD countries. Carefully controlling for institutional features and for business cycle comovements between countries, we confirm our qualitative theoretical predictions. However, the magnitude of spill-over effects is larger in the data than in the theoretical model. We show that introducing real wage rigidity can remedy this problem.en
dc.language.isoengen
dc.publisher|aUniversität Hohenheim, Forschungszentrum Innovation und Dienstleistung (FZID) |cStuttgarten
dc.relation.ispartofseries|aFZID Discussion Paper |x06-2009en
dc.subject.jelF11en
dc.subject.jelF12en
dc.subject.jelF16en
dc.subject.jelJ64en
dc.subject.jelL11en
dc.subject.ddc330en
dc.subject.keywordSpill-over effects of labor market institutionsen
dc.subject.keywordunemploymenten
dc.subject.keywordinternational tradeen
dc.subject.keywordsearch frictionsen
dc.subject.keywordheterogeneous firmsen
dc.titleUnemployment in an interdependent world-
dc.typeWorking Paperen
dc.identifier.ppn608700568en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:fziddp:200906en

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