Trade liberalization and the Labor Market Revisited
AbstractThis paper provides new insights in understanding the adjustments of the labor market to trade liberalization policies in an economy producing tradeables and nontradeables. The results of the paper indicate that the short-run effects of trade liberalization on wages, labor allocation and worker welfare is contingent on certain explicit production and demand conditions that exist in an economy. The production condition is related to the slope of the labor demand curve in a given economy and the demand condition is related to the difference in the cross-price elasticity of demand of nontradeables to the price of importables and exportables. The necessary combination of these conditions needed for trade liberalization to be welfare improving in the short run is explored. Copyright International Atlantic Economic Society 2005
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal International Advances in Economic Research.
Volume (Year): 11 (2005)
Issue (Month): 4 (November)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=112112
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Njinkeu, Dominique, 1996. "Evaluation of the incentive structure: A survey and application to Cameroon," World Development, Elsevier, vol. 24(3), pages 557-568, March.
- Clague, Christopher & Greenaway, David, 1994. "Incidence Theory, Specific Factors and the Augmented Heckscher-Ohlin Model," The Economic Record, The Economic Society of Australia, vol. 70(208), pages 36-43, March.
- Neary, J Peter, 1978. "Short-Run Capital Specificity and the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 88(351), pages 488-510, September.
- Mayer, Wolfgang, 1974. "Short-Run and Long-Run Equilibrium for a Small Open Economy," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 955-67, Sept./Oct.
- Priniti Panday, 2003. "Incidence theory and the shifting of protection across sectors: the South Asian experience," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 125-132.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.