Egger, Hartmut; Kreickemeier, Udo - In: Scandinavian Journal of Economics 111 (2009) 4, pp. 765-788
This paper analyses the effects of redistribution in a model of international trade with heterogeneous firms in which a fair-wage effort mechanism leads to firm-specific wage payments and involuntary unemployment. The redistribution scheme is financed by profit taxes and gives the same absolute...