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Labour Market Imperfection and HOS Model: Some Counterintuitive Results

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  • Chaudhuri, Sarbajit

Abstract

This note introduces labour market imperfection in an otherwise Heckscher-Ohlin-Samuelson (HOS) model and provides a theory of unionized wage formation. It demonstrates that this framework satisfies the Stolper-Samuelson theorem and the magnification effect and that it is capable of producing certain results which are contrary to the standard HOS and the Corden and Findlay (1975) results.

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File URL: http://mpra.ub.uni-muenchen.de/18034/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18034.

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Date of creation: 20 May 2009
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Handle: RePEc:pra:mprapa:18034

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Keywords: Labour market imperfection; Heckscher-Ohlin-Samuelson model; Corden and Findlay model; Foreign capital; Trade liberalization.;

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  1. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, Elsevier, vol. 7(4), pages 317-322, November.
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