CARRERE, Céline; FUGAZZA, Marco; OLARREAGA, Marcelo; … - Fondation pour les études et recherches sur le … - 2014
We embed a model of the labor market with sector-specific search-and-matching frictions into a Ricardian model with a continuum of goods to show that trade liberalization causes higher unemployment in countries with comparative advantage in sectors with strong labor market frictions and leads to...