effect of trade liberalization between two identical economies on unemployment. I solve for two versions of the growth model … versions trade liberalization has a steady state effect on unemployment that can be either negative or positive depending on …

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two … sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment … real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between …