Helpman, Elhanan, Itshoki, Oleg and Redding, Stephen (2010) Inequality and unemployment in a global economy. Econometrica, 78 (4). pp. 1239-1283. ISSN 0012-9682
Full text not available from this repository.Abstract
This paper develops a new framework for examining the determinants of wage distributions that emphasizes within-industry reallocation, labor market frictions, and differences in workforce composition across firms. More productive firms pay higher wages and exporting increases the wage paid by a firm with a given productivity. The opening of trade enhances wage inequality and can either raise or reduce unemployment. While wage inequality is higher in a trade equilibrium than in autarky, gradual trade liberalization first increases and later decreases inequality.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1111/(IS... |
| Additional Information: | © 2010 Wiley-Blackwell |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Date Deposited: | 08 Apr 2011 13:24 |
| Last Modified: | 12 Apr 2024 23:51 |
| URI: | http://eprints.lse.ac.uk/id/eprint/35405 |
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