Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27762
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dc.contributor.authorFelbermayr, Gabrielen_US
dc.contributor.authorLarch, Marioen_US
dc.contributor.authorLechthaler, Wolfgangen_US
dc.date.accessioned2009-09-09en_US
dc.date.accessioned2009-09-09T11:55:26Z-
dc.date.available2009-09-09T11:55:26Z-
dc.date.issued2009en_US
dc.identifier.piurn:nbn:de:bsz:100-opus-3873en_US
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_US
dc.language.isoengen_US
dc.publisherUniv. Hohenheim, Forschungszentrum Innovation und Dienstleistung (FZID) |cStuttgarten_US
dc.relation.ispartofseriesFZID discussion papers |x06-2009en_US
dc.subject.jelF11en_US
dc.subject.jelF12en_US
dc.subject.jelF16en_US
dc.subject.jelJ64en_US
dc.subject.jelL11en_US
dc.subject.ddc330en_US
dc.subject.keywordSpill-over effects of labor market institutionsen_US
dc.subject.keywordunemploymenten_US
dc.subject.keywordinternational tradeen_US
dc.subject.keywordsearch frictionsen_US
dc.subject.keywordheterogeneous firmsen_US
dc.titleUnemployment in an interdependent worlden_US
dc.typeWorking Paperen_US
dc.identifier.ppn608700568en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:fziddp:200906-

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