LAUSSEL, Didier; MICHEL, Philippe; Paul, Thierry - Institut de Recherche Économique et Sociale (IRES), … - 2004
In a two-country Ricardian model, we study the dynamics of intersectoral reallocation of labour following upon a once and for ail move to free trade. The job creation/destruction process in both sectors is slow and this results in unemployment during the transition toward the long run free trade...