INTERNATIONAL WELFARE AND EMPLOYMENT LINKAGES ARISING FROM MINIMUM WAGES

• 成果类型: Article
• 署名作者: Egger, Hartmut; Egger, Peter; Markusen, James R.
• 署名单位: University of Colorado System; University of Colorado Boulder; University of Bayreuth; Swiss Federal Institutes of Technology Domain; ETH Zurich
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2012.00700.x
• 发表日期: 2012
• 页码: 771-789
• 关键词: european unemployment prop; labor-market rigidities; american wages; TRADE; ECONOMY; scale; jobs

摘要

We formulate a two-country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor market imperfections arise by virtue of country-specific real minimum wages. Abstracting from selection of just the best firms into export status, standard effects on marginal and average firm productivity are reversed in our model, yet there are significant gains from trade arising from employment expansion. In addition, we show that with firm heterogeneity an increase in one countrys minimum wage triggers firm exit in both countries and thus harms workers at home and abroad.