Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/168191 
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: International Trade and Trade Reforms III No. C15-V1
Publisher: 
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, Kiel, Hamburg
Abstract: 
We embed a competitive search model with labor market discrimination into a two-sector, two-country framework in order to analyze how labor market discrimination and international trade interact. Discrimination reduces the matching probability and output in the differentiated-product sector so that the country with more discriminatory firms has a comparative advantage in the simple sector. Trade liberalization reinforces the negative effect of discrimination in the more discriminatory country.
JEL: 
F16
F66
J71
Document Type: 
Conference Paper

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