Labour Market Frictions, Firm Growth, and International Trade

• Pablo D Fajgelbaum ^[1]
  1. [1] UCLA
• Localización: Review of economic studies, ISSN 0034-6527, Vol. 87, Nº 3, 2020, págs. 1213-1260
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • I study the aggregate effects of labour market frictions in a small open economy where firms grow slowly and make fixed export investments. The model features interactions between dynamic investments in exporting and search frictions with job-to-job mobility. A calibration to Argentina’s economy matching data on firm growth, worker transitions between firms, and export dynamics suggests that the real income gains from lowering frictions in job-to-job transitions are about seven times larger than comparable reductions in frictions from unemployment. Barriers to worker mobility across firms matter for the real income gains of trade-cost reductions.