Patterns of Labour Market Adjustment to Trade Shocks with Imperfect Capital Mobility

• 成果类型: Article
• 署名作者: Artuc, Erhan; Brambilla, Irene; Porto, Guido
• 署名单位: The World Bank; National University of La Plata
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueac012
• 发表日期: 2022
• 页码: 2048-2074
• 关键词: Firm Dynamics; LIBERALIZATION; EXIT; INVESTMENT; GROWTH; IMPACT; entry

摘要

We explore how different investment frictions affect the patterns of responses of labour markets to tariff cuts. To investigate these patterns, we formulate a multi-sector dynamic model featuring capital and labour adjustment costs that we fit to Argentine data. Using counterfactual simulations of a tariff decline in the textile sector, we show that capital adjustment can create long-run responses of real wages that are larger than the short-run responses. This happens as textile firms disinvest during the transition. We also show that the reduction of tariffs on capital inputs boosts investment and real wages across sectors.