We build a theoretical model that incorporates unionization in the labor market into a Heckscher-Ohlin-Samuelson (HOS) framework to in- vestigate the impact of unionization on the Stolper-Samuelson Theorem. To capture the American economy case, we assume that unskilled labor in the manufactured...

It is widely believed that the presence of a large informal sector increases the ef?ciency costs of social programs in developing countries. We develop a simple theoretical model of optimal unemployment insurance (UI) that speci?es the ef?ciency–insurance tradeoff in the presence of informal...