We introduce search unemployment à la Pissarides into Melitz' (2003) model of trade with heterogeneous firms. We allow … effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and raises real wages as long as …. -- Trade liberalization ; unemployment ; search model ; firm heterogeneity …

We introduce search unemployment à la Pissarides into Melitz' (2003) model of trade with heterogeneous firms. We allow … effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and raises real wages as long as …

for economies with either an earnings-related or flatrate unemployment compensation system are considered. A distinctive … feature of the analysis is the comparison of both unemployment compensation systems in a two-country setting. It is … demonstrated that the performance of a system with earnings-related or flat-rate unemployment benefits depends on whether the labor …