Unemployment in an interdependent world

Felbermayr, Gabriel; Larch, Mario; Lechthaler, Wolfgang

Unemployment in an interdependent world

dc.contributor.author	Felbermayr, Gabriel	de
dc.contributor.author	Larch, Mario	de
dc.contributor.author	Lechthaler, Wolfgang	de
dc.date.accessioned	2024-04-08T08:42:53Z
dc.date.available	2024-04-08T08:42:53Z
dc.date.created	2009-09-16
dc.date.issued	2009
dc.description.abstract	We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention to the role of income effects and shows that bad institutions in one country worsen labor market outcomes not only in that country but also in its trading partners. This spill-over effect is conditioned by trade costs and country size: smaller and/or more centrally located nations suffer less from inefficient policies at home and are more heavily affected from spill-overs abroad than larger and/or peripheral ones. We offer empirical evidence for a panel of 20 rich OECD countries. Carefully controlling for institutional features and for business cycle comovements between countries, we confirm our qualitative theoretical predictions. However, the magnitude of spill-over effects is larger in the data than in the theoretical model. We show that introducing real wage rigidity can remedy this problem.	en
dc.identifier.swb	310792053
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5276
dc.identifier.urn	urn:nbn:de:bsz:100-opus-3873
dc.language.iso	eng
dc.relation.ispartofseries	FZID discussion papers; 06
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Spill-over effects of labor market institutions	en
dc.subject	Unemployment	en
dc.subject	International trade	en
dc.subject	Search fricitons	en
dc.subject	Heterogeneous firms	en
dc.subject.ddc	330
dc.subject.gnd	Spill-over-Effekt	de
dc.subject.gnd	Arbeitsmarkt	de
dc.subject.gnd	Welthandel	de
dc.subject.gnd	Arbeitslosigkeit	de
dc.title	Unemployment in an interdependent world	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	7	de
local.faculty.number	3	de
local.institute.number	795	de
local.institute.number	520alt	de
local.opus.number	387
local.series.issueNumber	06
local.series.title	FZID discussion papers
local.university	Universität Hohenheim	de
local.university.faculty	Landesanstalten	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Forschungszentrum Innovation und Dienstleistung	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de

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