Product market integration and labour markets
Subtitle: aggregate gains at the cost of more inequality?
By: by Torben Andersen, Allan Sorensen.
Contributors: Sorensen, Alan T. 1972-
Series: Discussion paper -- no. 2556; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 2556
Publisher: IZA
Published: 2007
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Labor market.; Globalization.; International economic integration.
Description: "Important labour market consequences of globalization may arise via product market integration which affects the room for wage negotiations and generates job creation and destruction through structural changes. We find in a Ricardian trade model that aggregate increases in wages and employment may conceal important differences across sectors/groups driven by a different balance between "protection" and "specialization" rents. In particular, wage inequality tends to be U-shaped, at first decreasing and then increasing in the process of product market integration. Consequently, there are gains in both the efficiency and the equity dimension until the level of integration reaches a certain level at which a trade-off arises"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 3/19/2007.

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