Convex vacancy creation costs shape firms’ responses to trade liberalisation. They induce capacity constraints by … liberalisation. To get an effect of trade liberalisation on wage inequality, we need on‐the‐job search and convex vacancy creation … costs because with linear costs trade liberalisation affects all wages in equal proportion. Furthermore, with convex vacancy …

distorts search effort, job ranking and vacancy creation. Distortions vary on the job ladder, but always result in deadweight … of the tax base, and primarily arise from distorted search effort and vacancy creation. Steeply rising deadweight losses … from distorted vacancy creation imply that the deadweight loss in the calibrated economy exceeds those incurred by very …

distorts search effort, job ranking and vacancy creation. Distortions vary on the job ladder, but always result in deadweight … of the tax base, and primarily arise from distorted search effort and vacancy creation. Steeply rising deadweight losses … from distorted vacancy creation imply that the deadweight loss in the calibrated economy exceeds those incurred by very …