Publication Type

Journal Article

Publication Date

11-1991

Abstract

This paper develops a two-country Heckscher-Ohlin model with endogenous equilibrium involuntary unemployment to examine the question: What is the effect of free trade on the equilibrium rates of unemployment in the labor abundant and labor-scarce countries? It is shown that free trade leads to a decline in the equilibrium rate of unemployment in the labor-abundant country but to a rise in unemployment in the labor-scarce country.

Discipline

Economics | Industrial Organization

Research Areas

Applied Microeconomics

Publication

Economics Letters

Volume

37

Issue

3

First Page

299

Last Page

304

ISSN

0165-1765

Identifier

10.1016/0165-1765(91)90226-b

Publisher

Elsevier

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1016/0165-1765(91)90226-b

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