start with a graphic tour through the mechanics ofgeneral equilibrium theory on trade and wages. This provides a set of …

The Heckscher-Ohlin theory and the Ricardian theory of international commerce traditionally have been treated as … integrated theory. This paper combines the Heckscher-Ohlin model and Ricardian model into a single unified framework and offers …

-skilled labor increases. This suppresses wages of low-skilled workers and/or increases their unemployment rates. On the other hand … for the years 1970 - 2004, we document how the volatility of hours worked and of wages of workers at different skill …

consistent with search theory. We apply the technique to eleven countries over various years, and find that incomplete … countries that strongly support unemployment insurance (UI) receive wages closer to their potential, so that doubling UI … decreases incomplete information and results in 5% higher wages. A more dense population reduces search costs leading to less …