We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the … trade, technology and relative returns to skilled and unskilled labour. Moreover, we show that as market integration … continues and trade costs fall below a certain threshold, the relative return to skilled labour may fall. …

necessarily informative for identifying the scale of labour ‘adjustment’ in an economy in the sense of the expansion and decline …

economies. We concentrate on the sources of slow adjustment in the labour market, such as sluggishness in labour demand and …

. Three alternative models of adjustment are considered, each one appropriate to a different time horizon: the specific … policies towards the adjustment process, from both a welfare economic and a political economy perspective. …

This Paper focuses on policies facilitating firm adjustment to globalization. We briefly review the effects of trade …

price changes coexist; (2) the probability of price adjustment is largely independent of the time since last adjustment; (3 …) the size of the adjustment is largely independent of the time since last adjustment; (4) extreme prices are younger than …

structural change in the transition economies and simulate the path of adjustment from central planning. We then analyse data …

terms of trade. To achieve identification, we derive robust restrictions on the sign of several impulse responses from a two …-country general equilibrium model. We find that both the real exchange rate and the terms of trade --whose responses are left …