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Wage Inequality and Unemployment: US vs Europe

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Author Info

  • Bertola, Giuseppe
  • Ichino, Andrea

Abstract

The radical liberalization of foreign trade in Central and Eastern Europe since 1989 has been a key part of the economic reform and has been accompanied by a full-scale geographical reorientation of international trade from East to West. Increased trade with the EU has been associated with remarkably little change in the structure of that trade, which suggests that policy should be oriented towards facilitating rather than slowing industrial adjustment. Future trade policy priorities should include continued liberalization, better coordination of trade and exchange rate policy, the attraction of foreign direct investment, resistance to pressures for selective protection, further development of trade relations with the EU and of intra-regional trade relations, and full participation in the WTO.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1186.

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Date of creation: May 1995
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Handle: RePEc:cpr:ceprdp:1186

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Related research

Keywords: Job Security; Labour Income Inequality; Regional Unemployment;

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