particular, and in contrast with estimates of the trade effect of other currency unions, we find that the impact of the euro on … trade has been close to zero. After reviewing the costs and benefits, we conclude with some open questions on normative and …

frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching frictions in labor markets …. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral … country's trade partner. Unemployment benefits can alleviate the distortions in a country's labor market in some cases but not …

This paper analyzes the impact of trade integration on wage inequality when there is heterogeneity across both workers … premium. Under trade, fixed export costs cause the selection of high productivity, high skill firms into exporting and an … caused by trade liberalization results from technology upgrading by new exporters. …

When will reducing trade barriers against a low wage country cause innovation to increase in high wage regions like the … producing old goods. Trade liberalization with a low wage country reduces the profitability of old goods and so the opportunity … offers a new mechanism for positive welfare effects of trade liberalization over and above the standard benefits of …

A recent boom in commodities-for-manufactures trade between China and other developing countries has led to much …

Since changes in trade openness are typically confounded with other factors, it has been difficult to identify the … labor market consequences of increased international trade. The advent of the United States Interstate Highway System … provides a unique policy experiment, which I use to identify the effect of reducing trade barriers on the relative demand for …

While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more … recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations and sectors. Using … wage dispersion between firms is related to firm employment size and trade participation. We then extend the heterogenous …

This paper develops a new framework for examining the distributional consequences of international trade that …. Larger firms pay higher wages and exporters pay higher wages than non-exporters. The opening of trade enhances wage … is larger in a trade equilibrium than in autarky, reductions of trade impediments can either raise or reduce wage …

This paper embeds a principal-agent firm in an otherwise standard trade model a la Melitz (2003) to investigate the … less productive firms use a lowered- powered one. International trade within an industry enhances market competition … international trade on firms that differ in their exporting status and pay structure result in more prevalence of high …