The decline in unskilled workers’ real wagesduring the 1980s in the United States andthe increase in their unemployment …

within-country trade. Our main findingis robust to various definitions of unemployment rates and openness measures …This paper documents a robust empirical regularity: in the long-run, higher trade openness iscausally associated to a … lower structural rate of unemployment. We establish this fact using:(i) panel data from 20 OECD countries, (ii) cross …

unemployment is introduced by an exogenously given wage rate, orientating ourselves by what has been called in the literature the … price and, thus, the output effect shows to be the driving force in our model. A terms of trade improvement leads to an … increase in welfare. In the case of a terms-of-trade deterioration, welfare only increases if employment increases. …