We develop a framework for studying how differences in the level and/or dispersion of per-capita income affect trade …. We then show that in line with the home-market effect countries have a trade surplus in the good for which they have …-exporter of luxuries. The structure of trade is irrelevant for welfare in the open economy if both sectors pay the same wage. If …

framework to study worker-specific effects of trade between two symmetric countries. Exporters in this setting make higher … from trade and, all other things equal, makes a negative employment effect of trade more likely. Furthermore, it … from autarky to trade. -- heterogeneous firms ; wage inequality ; fair wages ; involuntary unemployment …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade …

find that openness to international trade has quantitatively important effects, leading to higher wage inequality and lower …

union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases … export of jobs. -- general oligopolistic equilibrium ; union wage setting ; asymmetric labor market institutions ; trade …