Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality
21 Pages Posted: 1 Mar 2010
Date Written: February 2010
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: Suggested Citation