The Impact of Globalisation with Rigid Labour Markets
AbstractThis dissertation examines the impact of globalisation when labour markets are imperfect. Chapters 2 and 3 start with an overview about recent trends in globalisation and provide evidence for labour market rigidity in developed countries. Chapter 4 studies minimum wages in a simple factor allocation model and derives basic results that are generalised in a Heckscher-Ohlin model in chapter 5. Chapter 6 analyses wage rigidity in a specific factors model. Finally, imperfect labour markets are implemented in a new economic geography framework to show that unemployment fosters agglomeration of economic activity. The main message is that labour market rigidity causes welfare losses from trade in a number of theoretical models. It is argued that wage subsidies can help to overcome both the inefficiency and the distribution problem.
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Bibliographic InfoPaper provided by University of Munich, Department of Economics in its series Munich Dissertations in Economics with number 7293.
Date of creation: 25 Jan 2007
Date of revision:
Globalisation; Imperfect Labour Markets; Trade; New Economic Geography;
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- Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute for the Study of Labor (IZA).
- Lars Calmfors & Giancarlo Corsetti & Michael P. Devereux & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2008. "Chapter 3: The effect of globalisation on Western European jobs: curse or blessing?," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 71-104, 02.
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