DP7707 Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality
|Publication Date:||February 2010|
|Keyword(s):||inequality, labor market frictions, trade, unemployment|
|JEL(s):||F12, F16, J64|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=7707|
Recent research has emphasized firm heterogeneity as a source of comparative advantage. Combining this approach with labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and inequality. This paper reviews this approach and reports a number of results from recent studies.