Publication Type
Journal Article
Version
publishedVersion
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
Citation
HOON, Hian Teck.
Comparative Advantage and the Equilibrium Rate of Unemployment. (1991). Economics Letters. 37, (3), 299-304.
Available at: https://ink.library.smu.edu.sg/soe_research/174
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/0165-1765(91)90226-b
