Protection and unemployment

• 成果类型: Article; Proceedings Paper
• 署名作者: Bradford, S
• 署名单位: Brigham Young University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2005.06.013
• 发表日期: 2006
• 页码: 257-271
• 关键词: International trade; unemployment; political economy

摘要

Job loss concerns strongly influence the politics of trade, yet the formal political economy of trade literature has largely ignored unemployment. This paper seeks to extend the literature by merging an unemployment model with a trade policy model. The theory implies that labor turnover rates and unionization rates may significantly affect protection for individual industries. I use US data to test the model and find that protection for an industry declines with its turnover rate and increases with its unionization rate. The results also imply that protection does not increase with output and increases with the number of unemployed workers. (c) 2005 Elsevier B.V. All rights reserved.