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International Trade and Labor Markets: Theory, Evidence, and Policy Implications

Author

Listed:
  • Carl Davidson

    (Michigan State University)

  • Steven J. Matusz

    (Michigan State University)

Abstract

Davidson and Matusz extend the traditional analysis of international trade to allow for labor markets characterized by workers whose labor-market experiences are punctuated by spells of involuntary unemployment. They demonstrate that such extensions are easily accomplished and that they provide valuable new insights that withstand empirical scrutiny. And perhaps most importantly, argue Davidson and Matusz, such models offer the appropriate venue in which to carry out policy analysis aimed at determining the best way to compensate those who suffer economic loss as a result of changing trade patterns.

Suggested Citation

  • Carl Davidson & Steven J. Matusz, 2004. "International Trade and Labor Markets: Theory, Evidence, and Policy Implications," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number itlm, November.
  • Handle: RePEc:upj:ubooks:itlm
    Note: PDF is the book's first chapter.
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    More about this item

    Keywords

    labor markets; international trade; unemployment; worker displacement; unemployment compensation;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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