The Effects of Trade on Unemployment: Evidence from 20 OECD countries

• This study empirically investigates if international trade has an impact on aggregate unemployment in the presence of labour market institutions. Two hypotheses are investigated: First, trade will have a direct e¤ect on the ag- gregate unemployment rate and, second, the e¤ect of trade on unemployment will be in.uenced by the structure of labour market institutions. Using the data of 20 OECD countries for the years 1961-2008, this study .nds that an increase in trade leads to higher aggregate unemployment as it interacts with rigid labour market institutions, whereas it may reduce aggregate unemploy- ment if the labour market is characterised by .exibility.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Economics

Nationalekonomi

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