de Melo, Jaime; Tarr, David - In: International Economic Review 34 (1993) 4, pp. 833-51
This paper examines the welfare effects of protection in two high wage premia sectors--autos and steel--to determine if protection is justified to correct for the labor misallocation due to the wage premia. If wage premia are exogenous, under most product market structures, labor misallocation...