|
EconStor >
Philipps-Universität Marburg >
Faculty of Business Administration and Economics, Philipps-Universität Marburg >
MAGKS Joint Discussion Paper Series in Economics, Universität Marburg >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/56508
|
| | |
| Title: | | International trade and unemployment: The worker-selection effect  |
| Authors: | | de Pinto, Marco Michaelis, Jochen |
| Issue Date: | | 2011 |
| Series/Report no.: | | Joint discussion paper series in economics 27-2011 |
| Abstract: | | This paper analyzes how trade liberalization influences the unemployment rate of workers with different abilities. We refine the Melitz (2003) framework to account for trade unions and heterogeneous workers, who differ with respect to their abilities. Our main findings are: (i) highability workers profit from trade liberalization in terms of higher wages and higher employment; (ii) the least efficient workers loose their job and switch to long-term unemployment (worker-selection effect); (iii) if a country is endowed with a large fraction of low-skilled workers, trade liberalization leads to a rise in aggregate unemployment. In this case, trade liberalization may harm a country's welfare. |
| Subjects: | | trade liberalization trade unions skill-specific unemployment |
| JEL: | | F1 F16 J5 |
| Document Type: | | Working Paper |
| Appears in Collections: | | MAGKS Joint Discussion Paper Series in Economics, Universität Marburg
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/56508
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|