2023-09-28 14:46:10 +00:00
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abstract: 'This paper studies the implications of globalization for aggregate
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output and welfare when risk averse workers face the risk of
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unemployment. The impact of globalization on the welfare of workers and
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aggregate output depends on the degree of substitutability between
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domestic workers and imported inputs. When the degree of
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substitutability is high (low), then globalization reduces (increases)
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wages and increases (reduces) unemployment. Irrespective of the
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substitutability, free trade doesn''t maximize the aggregate output. A
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small tariff (import subsidy) increases aggregate output when the
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substitutability is low (high), however, it can exacerbate the
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distributional conflict. Domestic labor market policies such as
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unemployment benefits and severance payments can protect workers against
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labor income risk but the firing restrictions do not. Free trade is
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optimal when labor market policies provide insurance against
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unemployment. (C) 2016 Elsevier B.V. All rights reserved.'
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affiliation: 'Ranjan, P (Corresponding Author), Univ Calif Irvine, Irvine, CA 92697
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USA.
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Ranjan, Priya, Univ Calif Irvine, Irvine, CA 92697 USA.'
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author: Ranjan, Priya
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author-email: pranjan@uci.edu
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author_list:
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- family: Ranjan
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given: Priya
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da: '2023-09-28'
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doi: 10.1016/j.jinteco.2016.08.005
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eissn: 1873-0353
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files: []
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issn: 0022-1996
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journal: JOURNAL OF INTERNATIONAL ECONOMICS
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keywords: 'Offshoring; Unemployment; Endogenous job destruction; Severance
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payments; Unemployment benefits'
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keywords-plus: 'UNEMPLOYMENT-INSURANCE; EMPLOYMENT PROTECTION; EQUILIBRIUM; INEQUALITY;
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JOBS'
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language: English
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month: NOV
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number-of-cited-references: '34'
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pages: 64-79
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papis_id: ba905a2c1d1fa8ab2f04c730c17c8c07
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ref: Ranjan2016globalizationrisk
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times-cited: '1'
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title: 'Globalization and risk averse workers: The roles of labor market and trade
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policies'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000390510100005
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usage-count-last-180-days: '1'
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usage-count-since-2013: '31'
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volume: '103'
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web-of-science-categories: Economics
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year: '2016'
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