|
|||||
|
|
Delay and dynamics in labor market adjustment: Simulation results |
|
| Authors: | Erhan Artu , Shubham Chaudhuri,John McLaren |
| Affiliation: | aKoç University, Rumelifeneri Yolu, 34450 Sariyer, I·stanbul, Turkey bEast Asia and Pacific Poverty Reduction and Economic Management Department, The World Bank, 1818 H Street, NW Washington, DC 20433, United States cDepartment of Economics, University of Virginia, 2015 Ivy Road, Room: 312, Charlottesville, VA, 22903 United States |
| Abstract: | We simulate numerically a trade model with labor mobility costs added, modeled in such a way as to generate gross flows in excess of net flows. Adjustment to a trade shock can be slow with plausible parameter values. In our base case, the economy moves 95% of the distance to the new steady state in approximately eight years. Gross flows have a large effect on this rate of adjustment and on the normative effects of trade. Announcing and delaying the liberalization can build – or destroy – a constituency for free trade. We study the conditions under which these contrasting outcomes occur. |
| Keywords: | Labor mobility Gross flows Net flows Gradualism Trade shocks Trade liberalization |
| 本文献已被 ScienceDirect 等数据库收录！ | |