Report
OA Policy
English

Trade in Unemployment

MandatorInternational Trade and Regional Economics - Centre for Economic Policy Research
Number of pages54
PublisherLondon : International Trade and Regional Economics - Centre for Economic Policy Research
Collection
  • Centre for Economic Policy Research (CEPR) - Discussion Paper; DP9916
Publication date2014
Abstract

We embed a model of the labor market with sector-specific search-and-matching frictions into a Ricardian model with a continuum of goods to show that trade liberalization causes higher unemployment in countries with comparative advantage in sectors with strong labor market frictions and leads to lower unemployment in countries with comparative advantage in sectors with weak labor market frictions. We test this prediction in a panel dataset of 97 countries during the period 1995-2009 and find that the data supports the theoretical prediction. Our results also help reconciliate the apparently contradicting evidence in the empirical literature on the impact of trade on unemployment.

Keywords
  • Search unemployment
  • Trade
Citation (ISO format)
CARRERE, Céline et al. Trade in Unemployment. 2014
Main files (1)
Report
accessLevelPublic
Identifiers
  • PID : unige:46750
  • Report identifier : 9916
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290downloads

Technical informations

Creation16/02/2015 22:21:00
First validation16/02/2015 22:21:00
Update time14/03/2023 22:50:49
Status update14/03/2023 22:50:49
Last indexation30/10/2024 22:53:34
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