Arbeitspapier
International trade and unemployment: A quantitative framework
Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor market frictions. To illustrate, we assess the effects of trade and labor market reforms for 28 OECD countries. Welfare effects of trade agreements are magnified when accounting for employment changes. While employment and welfare increase in most countries, some experience higher unemployment and lower welfare. Labor market reforms in one country have small positive spillover effects on trading partners.
- Sprache
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Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 4013
- Klassifikation
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Wirtschaft
Empirical Studies of Trade
Trade and Labor Market Interactions
Trade Policy; International Trade Organizations
- Thema
-
international trade
unemployment
trade costs
structural estimation
gravity equation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Heid, Benedikt
Larch, Mario
- Ereignis
-
Veröffentlichung
- (wer)
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Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:41 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Heid, Benedikt
- Larch, Mario
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2012