Does Protectionism Harm Unskilled Workers?

7 Pages Posted: 5 Oct 2018

See all articles by Hamid Beladi

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Reza Oladi

Utah State University - College of Business - Department of Economics

Date Written: November 2018

Abstract

In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the unskilled wages. This result has interesting political‐economic implications.

Keywords: intermediate goods, protectionism, unskilled wages

Suggested Citation

Beladi, Hamid and Marjit, Sugata and Oladi, Reza, Does Protectionism Harm Unskilled Workers? (November 2018). Economics & Politics, Vol. 30, Issue 3, pp. 444-450, 2018. Available at SSRN: https://ssrn.com/abstract=3260777 or http://dx.doi.org/10.1111/ecpo.12118

Hamid Beladi (Contact Author)

University of Texas at San Antonio - College of Business - Department of Economics ( email )

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta ( email )

R 1, B.P. Township
Kolkata, West Bengal, India
Kolkata, West Bengal 700094
India

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Reza Oladi

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States

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