Authors:

  • Elhanan Helpman

Excerpt

Trade Liberalization and Labor Market Dynamics with Heterogeneous Firms. Elhanan Helpman, August 25, 2015, Paper. "Adjustment to trade liberalization is associated with substantial reallocation of labor across firms within sectors. This salient feature of the data is well captured by models of international trade with heterogeneous firms. In this paper we reconsider the adjustment of firms and workers to changes in trade costs, explicitly accounting for labor market frictions and the entire adjustment path from an initial to a final steady-state. The transitional dynamics exhibit rich patterns, varying across firms that differ in productivity levels..." Link