With the steady growth of global value chains (GVCs), each country's trade now has a more complex relationship with the international division of labor. We decompose the employment effects of a country's trade into five components, specifically the labour content (1) in exports, (2) in imports,...

Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor...