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The Effects of Trade on Unemployment: Evidence from 20 OECD countries
Stockholm University, Faculty of Social Sciences, Department of Economics.
2010 (English)Conference paper (Other academic)
Abstract [en]

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.

Place, publisher, year, edition, pages
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URN: urn:nbn:se:su:diva-53691OAI: diva2:391136
6th International Student Conference Empirical Studies in Social Science, Izmir University of Economics and Stockholm-Uppsala Doctoral Students Workshop in Economics, Stockholm University
Available from: 2011-01-24 Created: 2011-01-24 Last updated: 2011-04-28Bibliographically approved

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Kim, Jaewon
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Department of Economics

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