This paper documents a robust empirical regularity: in the long-run, higher trade openness is associated with a lower structural rate of unemployment. We establish this fact using: (i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries. The time structure...

We introduce search unemployment into Melitz’s trade model. Firms’ monopoly power on product markets leads to strategic wage bargaining. Solving for the symmetric equilibrium we show that the selection effect of trade influences labor market outcomes. Trade liberalization lowers unemployment...

This paper documents a robust empirical regularity: in the long-run, higher trade openness is associated with a lower structural rate of unemployment. We establish this fact using: (i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries. The time structure...

We introduce search unemployment into Melitz's trade model. Firms' monopoly power on product markets leads to strategic wage bargaining. Solving for the symmetric equilibrium we show that the selection effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and...

Sowohl auf theoretischer als auch auf empirischer Ebene wurde die wichtige Rolle privater und staatlicher Investitionstätigkeit für das Wirtschaftswachstum deutlich. Zu betonen ist hierbei, dass beide Investitionsarten in einer komplementären Beziehung zueinander stehen, so dass ein...

In this paper we study Malthusian pressures in a frontier economy. Using the empirical data on the real prices and demographic variables from 1688 to 1860 for Quebec and Montreal, we test for the existence of Malthusian pressures. Bearing in mind the particularities of frontier economies and the...

Central to the scientific debate about the 'informal sector' and the validity of the concept used to be a twofold challenge. The crux laid not only in the objective to explain the widely visible persistence of the informal economy in developing countries, but also in the identification of its...