IDEAS home Printed from
   My bibliography  Save this paper

The Impact of Globalisation with Rigid Labour Markets


  • Seidel, Tobias


This 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.

Suggested Citation

  • Seidel, Tobias, 2007. "The Impact of Globalisation with Rigid Labour Markets," Munich Dissertations in Economics 7293, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:dissen:7293

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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).
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. 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, February.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lmu:dissen:7293. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tamilla Benkelberg). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.