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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.

Suggested Citation

  • Chaudhuri, Sarbajit, 2009. "Labour Market Imperfection and HOS Model: Some Counterintuitive Results," MPRA Paper 18034, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:18034
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    File URL: https://mpra.ub.uni-muenchen.de/18034/1/MPRA_paper_18034.pdf
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    References listed on IDEAS

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

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

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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