Unemployment effects of trade with a low-wage country: A minimum-wage model with sector-specific factors

Brecher Richard A.; Yu Zhihao

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Unemployment effects of trade with a low-wage country: A minimum-wage model with sector-specific factors

机译：贸易失业效应与低工资国家：具有划分特定因素的最低工资模型

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Contrary to conventional wisdom, this paper shows that a high-wage economy can paradoxically reduce its level of aggregate unemployment by engaging in international trade with a low-wage country. We demonstrate this possibility after introducing a minimum wage into the basic specific-factor model (with immobile capital and mobile labor), even though the opposite result is known to arise in the longer-run framework of the standard Heckscher-Ohlin-Samuelson model (with both inputs mobile). Our result provides a cautionary note for public-policy discussions that promote trade barriers as a way to reduce unemployment.

机译：与传统智慧相反，本文认为，高工资经济可以通过与低工资国家的国际贸易从事国际贸易来矛盾地减少其总产值水平。在将最低工资引入基本特定因素模型（具有固定资本和移动劳动）之后，我们证明了这种可能性，即使已知在标准Heckscher-Ohlin-Samuelson模型的长期框架中出现相反的结果（两个输入移动设备）。我们的结果为公共政策讨论提供了一个警告，促进贸易壁垒作为减少失业的一种方式。

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《Review of international economics》 |2021年第2期|402-408|共7页
作者
Brecher Richard A.; Yu Zhihao;
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Carleton Univ Dept Econ 1125 Colonel Dr Ottawa ON K1S 5B6 Canada;

Carleton Univ Dept Econ 1125 Colonel Dr Ottawa ON K1S 5B6 Canada;

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Unemployment effects of trade with a low-wage country: A minimum-wage model with sector-specific factors

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