changes. While employment and welfare increase in most countries, some experience higher unemployment and lower welfare. Labor … assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a … quantitative trade framework which explicitly models labor market frictions. To illustrate, we assess the effects of trade and …

real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between … sectors is much larger for skilled labor than for unskilled labor. On average, unemployment among unskilled workers increases …We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two …

prices compared to less productive firms. Trade liberalization also affects labor market outcomes. Increased profits by … exporting firms triggers firm entry, reduces unemployment and increases wage dispersion in the on-the-job search model with …