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dc.contributor.authorSaint-Paul, Gillesen
dc.date.accessioned2005-06-09-
dc.date.accessioned2010-07-07T09:09:57Z-
dc.date.available2010-07-07T09:09:57Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/33299-
dc.description.abstractTrade liberalization is often met with sharp opposition. Recent examples include the so-called Bolkestein directive, which allows service providers from a given EU member to temporarily work in another member country. One way to view such a reform is that it simply widens the range of goods that are tradeable. This kind of reform is analyzed in a two-country Dornbusch-Fischer-Samuelson style model, where labor cannot relocate to another sector upon a non expected increase in the range of goods that can be traded. The effect of liberalization on the terms of trade tends to favor the poorer country (the East), if (as assumed) the most sophisticated goods are tradeable before reform. Second, under ex-post liberalization, there exists a class of workers in the West who are harmed because they face competition from Eastern workers and cannot relocate to other activities. But if the East's economy is relatively small, their wage losses are not very large. Things are different, however, if there exist asymmetries in labor market institutions, such that upon reform, labor can relocate in the East but not in the West. Some workers in the West can then experience very large wage losses. Thus, rigid labor markets in the West magnify opposition to reform there.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x1618en
dc.subject.jelF16en
dc.subject.jelF11en
dc.subject.jelF13en
dc.subject.ddc330en
dc.subject.keywordtrade liberalizationen
dc.subject.keywordEuropean integrationen
dc.subject.keywordBolkestein directiveen
dc.subject.keywordlabor mobilityen
dc.subject.keywordlabor market institutionsen
dc.subject.keywordcomparative advantageen
dc.subject.keywordterms of tradeen
dc.subject.stwAußenhandelsliberalisierungen
dc.subject.stwArbeitsmarktsegmentierungen
dc.subject.stwInternationale Arbeitsmobilitäten
dc.subject.stwInternationaler Dienstleistungsverkehren
dc.subject.stwEuropäische Integrationen
dc.subject.stwEU-Staatenen
dc.titleMaking sense of Bolkestein-bashing: trade liberalization under segmented labor markets-
dc.type|aWorking Paperen
dc.identifier.ppn488862701en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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