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Jobs, Jobs, Jobs: A "New" Perspective on Protectionism

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Author Info
Arnaud Costinot (University of California - San Diego)

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Abstract

This paper analyzes the determinants of protectionism in a small open economy with search frictions. This this environment, jobs generate rents whose access depends on the level of trade protectionn. By raising the domestic price of a good, a government may attract more firms in a particular industry. This raises the probability that workers will find jobs in this sector, and in turn, will benefit from the associated rents. Though simple, this channel may help explain a variety of stylized facts on the structure of trade protection and individual trade-policy preferences.

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Paper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number 2006-05R.

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Date of creation: 01 Feb 2008
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Handle: RePEc:cdl:ucsdec:2006-05r

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Related research
Keywords: search frictions; trade protection; trade-policy preferences;

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    Other versions:
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