How an export boom affects unemployment
Does trade affect the equilibrium rate of unemployment? To theoretically examine this question, we incorporate firm-union bargaining considerations into a model with a booming external sector and a stagnating manufacturing sector. In the model, a sustained improvement in the terms of trade lowers unemployment. To empirically investigate the predicted determinants of the unemployment rate, we use data for Australia, a country whose prosperity has always depended on the value of its exports. We find strong evidence that higher export prices, capital accumulation in tradeable goods industries and... Mehr ...
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| Dokumenttyp: | doc-type:workingPaper |
| Erscheinungsdatum: | 2011 |
| Verlag/Hrsg.: |
Osaka: Osaka University
Institute of Social and Economic Research (ISER) |
| Schlagwörter: | ddc:330 / E24 / F12 / J51 / equilibrium unemployment rate / specific factors model / bargaining / mining boom / Dutch disease / Arbeitsmarkttheorie / Terms of Trade / Beschäftigungseffekt / Bergbauerzeugnis / Außenhandel / Rohstoffreichtum / Australien |
| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-29049316 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | http://hdl.handle.net/10419/92558 |
Does trade affect the equilibrium rate of unemployment? To theoretically examine this question, we incorporate firm-union bargaining considerations into a model with a booming external sector and a stagnating manufacturing sector. In the model, a sustained improvement in the terms of trade lowers unemployment. To empirically investigate the predicted determinants of the unemployment rate, we use data for Australia, a country whose prosperity has always depended on the value of its exports. We find strong evidence that higher export prices, capital accumulation in tradeable goods industries and a lower unemployment benefit replacement rate each reduce the equilibrium unemployment rate.