Helpman, Elhanan; Itskhoki, Oleg; Redding, Stephen J. - C.E.P.R. Discussion Papers - 2011
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 …