Trade, Labor and International Governance – An Inquiry into the Potential Effectiveness of the New International Labor Law

Trade, Welfare, and International Labor Market Spillovers

This paper develops a two-country new trade theory framework with two types of labor (skilled and unskilled) and an imperfect labor market arising from country-specific real minimum wages. It examines welfare implications of trade liberalization and spillover effects of labor market shocks in a global economy. The model identifies two key forces that shape the results: i) external scale effects...

Endogenous Labor Supply and International Trade

It is assumed in new trade theory and new economic geography that the supply of labor is fixed, which is not true in real labor markets. We develop a model of new trade theory by incorporating an elastic labor supply and analyze the impacts of technological progress on the equilibrium outcomes of working hours and economic welfare. We first show that the labor supply curve is backward bending. ...

Endogenous Labor Supply and International Trade

It is assumed in new trade theory and new economic geography that the supply of labor is fixed, which is not true in real labor markets. We develop a model of new trade theory by incorporating an elastic labor supply and analyze the impacts of technological progress on the equilibrium outcomes of working hours and economic welfare. We first show that the labor supply curve is backward bending. ...

International Division of Labor and Global Economic Processes: An Analysis of the International Trade in Automobiles

International Trade and Polarization in the Labor Market

The paper builds an argument that international trade can be an explanation behind polarization of employment in the labor market observed in developed countries such as U.K. and U.S. It considers a small open economy, having production sectors which use three types of labor: high-skill, middle-skill and low-skill. The economy faces an increase in the relative price of the high-skill intensive ...