increase in welfare. In the case of a terms-of-trade deterioration, welfare only increases if employment increases. … change both in an exogenously given low-skilled labour wage rate and in terms-oftrade on employment and welfare. As a … employment and welfare. Thus, it will become obvious that not the distortion as such is decisive but its general equilibrium …

integration. -- employment protection ; firing margin ; trade in intermediate goods ; labor market turnover ; revenue risk …-North intermediate goods trade framework. International product market integration leads to redistribution of market shares from 'weak … consequently lead to higher labor market turnover, higher welfare and increased wage inequality, while the effect on employment is …