International Trade and Unemployment

On the Redistribution of Trade Gains When Firms Matter

Business & Finance, Career Planning & Job Hunting, Labor, Economics, International Economics
Cover of the book International Trade and Unemployment by Marco de Pinto, Springer Berlin Heidelberg
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Marco de Pinto ISBN: 9783642332364
Publisher: Springer Berlin Heidelberg Publication: December 14, 2012
Imprint: Physica Language: English
Author: Marco de Pinto
ISBN: 9783642332364
Publisher: Springer Berlin Heidelberg
Publication: December 14, 2012
Imprint: Physica
Language: English

Economic theory and empirical research confirm that the rising international integration caused an increase in aggregate income at least for the industrialized countries, although trade liberalization is no Pareto improvement. In the empirical literature, there is a consensus that the international integration implies a destruction of low-skilled job vacancies and an increase in income, while the conclusions are mixed concerning the implication for the overall unemployment rate. This book seeks to find theoretical explanations to these empirical regularities. The book poses three questions: What are the implications of trade liberalization for the labor market in the presence of trade unions if we account for both firm and worker heterogeneity? What are the implications of a redistribution policy if the government chooses unemployment benefits to partially compensate the losers of trade liberalization?, and what is the optimal redistribution scheme for trade gains if the government explicitly takes into account the consequences for the income distribution? This book presents a rigorous theoretical analysis to answer the questions posed. Beside the well-known firm-selection effect on goods markets caused by trade liberalization, a selection process on the labor market -the worker-selection effect - is presented. The book also argues that if welfare is measured in the traditional manner, i.e. income per capita, compensating the loser of trade liberalization by paying unemployment benefits decreases welfare, but the intensity of the reduction differs with respect to the chosen funding of the unemployment benefits. Another significant contribution of this book is that if the objective function of the government, i.e. the modified welfare function, includes both aggregate income and income inequality, the redistribution of trade gains can lead to an increase in welfare.​

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Economic theory and empirical research confirm that the rising international integration caused an increase in aggregate income at least for the industrialized countries, although trade liberalization is no Pareto improvement. In the empirical literature, there is a consensus that the international integration implies a destruction of low-skilled job vacancies and an increase in income, while the conclusions are mixed concerning the implication for the overall unemployment rate. This book seeks to find theoretical explanations to these empirical regularities. The book poses three questions: What are the implications of trade liberalization for the labor market in the presence of trade unions if we account for both firm and worker heterogeneity? What are the implications of a redistribution policy if the government chooses unemployment benefits to partially compensate the losers of trade liberalization?, and what is the optimal redistribution scheme for trade gains if the government explicitly takes into account the consequences for the income distribution? This book presents a rigorous theoretical analysis to answer the questions posed. Beside the well-known firm-selection effect on goods markets caused by trade liberalization, a selection process on the labor market -the worker-selection effect - is presented. The book also argues that if welfare is measured in the traditional manner, i.e. income per capita, compensating the loser of trade liberalization by paying unemployment benefits decreases welfare, but the intensity of the reduction differs with respect to the chosen funding of the unemployment benefits. Another significant contribution of this book is that if the objective function of the government, i.e. the modified welfare function, includes both aggregate income and income inequality, the redistribution of trade gains can lead to an increase in welfare.​

More books from Springer Berlin Heidelberg

Cover of the book Drivers of Innovation, Entrepreneurship and Regional Dynamics by Marco de Pinto
Cover of the book Environment and the Formation of Galaxies: 30 years later by Marco de Pinto
Cover of the book Erfindungen, Patente, Lizenzen by Marco de Pinto
Cover of the book The Chemistry of Zirconacycles and 2,6-Diazasemibullvalenes by Marco de Pinto
Cover of the book Endometrial Carcinoma by Marco de Pinto
Cover of the book Pediatric CNS Tumors by Marco de Pinto
Cover of the book Switchpoints for the Future of Logistics by Marco de Pinto
Cover of the book Hair Replacement Surgery by Marco de Pinto
Cover of the book Geology of Hungary by Marco de Pinto
Cover of the book Transfer of Business and Acquired Employee Rights by Marco de Pinto
Cover of the book Semigroups, Boundary Value Problems and Markov Processes by Marco de Pinto
Cover of the book Ion Implantation in Semiconductors by Marco de Pinto
Cover of the book Schlafmedizin 1x1 by Marco de Pinto
Cover of the book A Concise Guide to Nuclear Medicine by Marco de Pinto
Cover of the book Cell Cycle in Development by Marco de Pinto
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy