The DOI matches its Crossref record; 50 of the 50 references it cites were found in a registry or an index.
Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity
Open accessAbstract
We introduce search unemployment into Melitz’s trade model. Firms’ monopoly power on product markets leads to strategic wage bargaining. Solving for the symmetric equilibrium we show that the selection effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and raises real wages as long as it improves average productivity. We show that this condition is likely to be met by a reduction in variable trade costs or by entry of new trading countries. Calibrating the model shows that the long-run impact of trade openness on the rate of unemployment is negative and quantitatively significant.
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Cites
Arellano, M., & Bond, S. (1991) · The Review of Economic Studies · doi:10.2307/2297968 · Cited by 33,272
Initial conditions and moment restrictions in dynamic panel data models
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The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
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Export Versus FDI with Heterogeneous Firms
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Equilibrium Unemployment Theory
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Plants and Productivity in International Trade
Bernard, A. B., Eaton, J., Jensen, J. B., & Kortum, S. (2003) · American Economic Review · doi:10.1257/000282803769206296 · Cited by 2,980
Entry, Exit, and firm Dynamics in Long Run Equilibrium
Hopenhayn, H. A. (1992) · Econometrica · doi:10.2307/2951541 · Cited by 2,857
The Cyclical Behavior of Equilibrium Unemployment and Vacancies
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Metadata
- Authors
- Felbermayr, G., Prat, J., & Schmerer, H.-J.
- Venue
- Journal of Economic Theory
- Publisher
- Elsevier BV
- Published
- 2011-01
- Volume
- 146
- Issue
- 1
- Pages
- 39-73
- ISSN
- 0022-0531 (ISSN-L)
- OpenAlex
- W2153632082
- Cited by
- 339
- References
- 50
- FWCI
- 78.23
- Type
- journal article
- Language
- en
- Open access
- green
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- Felbermayr, G., Prat, J., & Schmerer, H.-J. (2011). Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity. Journal of Economic Theory. https://doi.org/10.1016/j.jet.2010.07.004
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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