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Unemployment of Unskilled Labor due to COVID-19 led Restriction on Migration and Trade

Author

Listed:
  • Mandal, Biswajit
  • Chaudhuri, Saswati
  • Prasad, Alaka Shree

Abstract

To combat COVID-19 the entire world has resorted to global lockdown implying restriction on international labor migration and trade. This paper aims to check the effect of such restrictions on the unemployment of unskilled labor in the source country. In competitive general equilibrium framework with three goods and four factors restriction on migration raises unemployment for given factor intensity. The results remain same even in a slightly different structure of the economy. In case of trade restriction, however, the rise or fall in unemployment depends on both the structure of the economy and the factor intensity assumption.

Suggested Citation

  • Mandal, Biswajit & Chaudhuri, Saswati & Prasad, Alaka Shree, 2020. "Unemployment of Unskilled Labor due to COVID-19 led Restriction on Migration and Trade," GLO Discussion Paper Series 614, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:614
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    File URL: https://www.econstor.eu/bitstream/10419/222450/1/GLO-DP-0614.pdf
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    More about this item

    Keywords

    General Equilibrium; COVID-19; Migration; Trade; Unemployment;

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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