This paper extends the partial equilibrium model presented in Riker (2021) by introducing multiple worker types. Firms operate under monopolistic competition and employ multiple worker types as imperfect substitutes in the production of their product variety. Workers belong to a broader labor...

We develop a pair of industry-specific partial equilibrium models of trade policy thatestimate how changes in tariff rates affect FDI. The models focus on two differenttypes of FDI. Tariff-jumping FDI is likely to expand with a large increase in the tariff ratein export markets, while export...