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Labour Market Imperfection and HOS Model: Some Counterintuitive Results

Sarbajit Chaudhuri
University of Calcutta

May 21, 2009

Abstract:
This note introduces labour market imperfection in an otherwise Heckscher-Ohlin-Samuelson (HOS) model and provides a theory of unionized wage formation. It demonstrates that this framework satisfies the Stolper-Samuelson theorem and the magnification effect and that it is capable of producing certain results which are contrary to the standard HOS and the Corden and Findlay (1975) results.

Keywords: Labour market imperfection, Heckscher-Ohlin-Samuelson model, Corden and Findlay model, Foreign capital, Trade liberalization

JEL Classifications: F2, F21, O17

Working Paper Series

Date posted: October 21, 2009 ; Last revised: October 21, 2009

Suggested Citation

Chaudhuri, Sarbajit, Labour Market Imperfection and HOS Model: Some Counterintuitive Results (May 21, 2009). Available at SSRN: http://ssrn.com/abstract=1492322

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Contact Information

Sarbajit Chaudhuri (Contact Author)

University of Calcutta ( email )

56A, B.T. Road
Kolkata , West Bengal 700 050
India
+91 33 2557 5082 (Phone)
+91 33 2844 1490 (Fax)

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