Holzner, Christian; Larch, Mario - In: The World Economy 45 (2021) 1, pp. 136-175
Convex vacancy creation costs shape firms’ responses to trade liberalisation. They induce capacity constraints by … creation costs, not all firms export to all foreign markets even if trade is fully liberalised. This implies that wage … liberalisation. To get an effect of trade liberalisation on wage inequality, we need on‐the‐job search and convex vacancy creation …