Lechthaler, Wolfgang; Mileva, Mariya - Institut für Weltwirtschaft (IfW) - 2014
We use a dynamic general equilibrium trade model with comparative advantage, heterogeneous firms, heterogeneous workers … and endogenous firm entry to analyze economic policy meant to compensate the losers of trade liberalization and reduce the … instrument to reduce the wage inequality after trade liberalization are training subsidies. They increase the supply of skilled …