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Smoothing the adjustment to trade liberalization
Empirica ( IF 1.024 ) Pub Date : 2020-11-25 , DOI: 10.1007/s10663-020-09495-1
Wolfgang Lechthaler , Mariya Mileva

We use a dynamic general equilibrium trade model with comparative advantage, heterogeneous firms, heterogeneous workers and endogenous firm entry to analyze economic policy meant to compensate the losers of trade liberalization and reduce the ensuing wage inequality. We consider wage taxes, consumption taxes, profit taxes, firm entry subsidies, worker sector-migration subsidies and training subsidies, and find that the re-distributional and distortionary effects of these instruments differ very much. The most potent instrument to reduce the wage inequality after trade liberalization are training subsidies. They increase the supply of skilled workers and thereby reduce the skill premium.



中文翻译:

顺应贸易自由化的调整

我们使用具有比较优势的动态一般均衡贸易模型,异质公司,异质工人和内生公司进入来分析旨在补偿贸易自由化失败者并减少随之而来的工资不平等的经济政策。我们考虑了工资税,消费税,利得税,企业准入补贴,工人移民补贴和培训补贴,发现这些工具的再分配和扭曲效应相差很大。贸易自由化后减轻工资不平等的最有效手段是培训补贴。它们增加了技术工人的供应,从而降低了技能溢价。

更新日期:2021-01-12
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