Tariff reforms with rigid wages

Rod Falvey; Udo Kreickemeier

doi:10.1142/9789813224919_0004

Tariff reforms with rigid wages

Rod Falvey, Udo Kreickemeier

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Research › peer-review

Abstract

This chapter analyzes the effects of tariff reforms on welfare and market access in a competitive small open economy that is characterized by involuntary unemployment due to non-market clearing wages that are fixed either in terms of the numeraire or in real terms. We show that recent tariff-reform results can be extended to integrated reforms of tariffs and the wage rate, and that the inherent tension between reforms that increase welfare and market access carries over. We also derive welfare increasing tariff-reform strategies that keep the wage rate constant, and show that this tension may be attenuated.

Original language	English
Title of host publication	International Trade and Labor Markets: Welfare, Inequality, and Unemployment
Editors	Udo Kreickemeier
Publisher	World Scientific Publishing
Pages	95-116
Number of pages	22
ISBN (Electronic)	9789813224919
ISBN (Print)	9789813224902
DOIs	https://doi.org/10.1142/9789813224919_0004
Publication status	Published - 1 Jan 2017
Externally published	Yes

Publication series

Name	World Scientific Studies in International Economics
Volume	61
ISSN (Electronic)	1793-3641

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10.1142/9789813224919_0004

Cite this

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Tariff reforms with rigid wages. / Falvey, Rod; Kreickemeier, Udo.
International Trade and Labor Markets: Welfare, Inequality, and Unemployment. ed. / Udo Kreickemeier. World Scientific Publishing, 2017. p. 95-116 (World Scientific Studies in International Economics; Vol. 61).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Research › peer-review

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Tariff reforms with rigid wages

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