This paper demonstrates that factors which impede labour market adjustments can have first-order impacts on aggregate output and social welfare. While several studies find that individual workers can face large and persistent sectoral reallocation costs, this paper shows that these costs are...

Overview of the research findings / Stephen Tapp, Ari Van Assche and Robert Wolfe -- International trade with firm heterogeneity : theoretical developments and policy implications / Beverly Lapham -- Trade and productivity : insights from Canadian firm-level data / John Baldwin and Beiling Yan...

This paper uses an equilibrium search and matching model to study Canada's sectoral labour adjustment in 2002-2006 during an increase in global commodity prices and exchange rate appreciation. I estimate economically significant adjustment costs for the aggregate economy in this episode and...