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

Elhanan Helpman

19 citations0/0 files storedNational Bureau of Economic Research

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Global trade and economics Labor market dynamics and wage inequality Global Trade and Competitiveness

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.

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References

2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 2004Export Versus FDI with Heterogeneous Firms 1994Job Creation and Job Destruction in the Theory of Unemployment 1991Equilibrium Unemployment Theory 1999Exceptional exporter performance: cause, effect, or both?2002The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 2003Plants and Productivity in International Trade 2007Firms in International Trade

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2011Comparative Advantage and Trade Performance

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