Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality

21 Pages Posted: 1 Mar 2010

See all articles by Elhanan Helpman

Elhanan Helpman

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

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Date Written: February 2010

Abstract

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.

Keywords: inequality, labor market frictions, trade, unemployment

JEL Classification: F12, F16, J64

Suggested Citation

Helpman, Elhanan, Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality (February 2010). CEPR Discussion Paper No. DP7707, Available at SSRN: https://ssrn.com/abstract=1559663

Elhanan Helpman (Contact Author)

Harvard University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR)

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United Kingdom

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