Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/34088
Authors: 
Andersen, Torben M.
Sørensen, Allan
Year of Publication: 
2007
Series/Report no.: 
IZA Discussion Papers 2556
Abstract: 
Important labour market consequences of globalization may arise via product market integration which affects the room for wage negotiations and generates job creation and destruction through structural changes. We find in a Ricardian trade model that aggregate increases in wages and employment may conceal important differences across sectors/groups driven by a different balance between protection and specialization rents. In particular, wage inequality tends to be U-shaped, at first decreasing and then increasing in the process of product market integration. Consequently, there are gains in both the efficiency and the equity dimension until the level of integration reaches a certain level at which a trade-off arises
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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