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🔗 Source: alessandroruggieri.com
📊 Size: 1.74 MB
👤 Author: Alessandro Ruggieri University of Nottingham
⬇️ Downloads: 45

Summary

Trade and labor market institutions have varying effects on labor market performance during trade reforms, with labor institutions such as firing costs, minimum wage, and unemployment insurance differing greatly among countries. Research questions include how labor market institutions affect dynamic adjustments to trade and the implications of introducing labor market regulations on aggregate and distributional gains from trade. A two-sector model of international trade with search frictions in the labor market is built to simulate the effects of trade reform under observed labor institutions in Mexico and Colombia. Results show labor market regulations explain 30-60% of cross-country differences in unemployment response to trade cost reductions, and that efficiency-equity trade-offs arise when reducing employment rigidities in favor of stronger downward wage rigidities.

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Trade and labor market institutions have varying effects on labor market performance during trade reforms, with labor institutions such as firing costs,...

Technical Information

  • File Format: PDF
  • File Size: 1.74 MB
  • Pages: 87
  • Language: EN
  • Author: Alessandro Ruggieri University of Nottingham
  • Total Downloads: 45
  • Last Updated: 3 hours ago

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