at Google ScholarTitle data
Felbermayr, Gabriel ; Larch, Mario ; Lechthaler, Wolfgang:
Endogenous Labor Market Institutions in an Open Economy.
In: International Review of Economics and Finance.
Vol. 23
(2012)
.
- pp. 30-45.
ISSN 1059-0560
DOI: https://doi.org/10.1016/j.iref.2011.10.004
Abstract in another language
The paper sets up a two-country asymmetric trade model with heterogeneous firms, search frictions and endogenous labor market institutions. Countries are linked by trade in goods and non-cooperatively set unemployment benefits to maximize national welfare. We show that more open and smaller economies have more generous unemployment benefit replacement rates as a larger fraction of the costs is borne by foreign trading partners. These results are in line with empirical stylized facts. Additionally, we find that the optimal level of unemployment benefits is independent from the level of unemployment benefits abroad and that non-cooperatively set unemployment rates are inefficiently high.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Keywords: | Endogenous labor market institutions; Unemployment; International trade; Search frictions; Heterogeneous firms |
| Subject classification: | F11; F12; F16; J64; L11 |
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VI: Empirical Economic Research Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VI: Empirical Economic Research > Chair Economics VI: Empirical Economic Research - Univ.-Prof. Dr. Mario Larch Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 14 Oct 2015 13:49 |
| Last Modified: | 15 Sep 2022 11:56 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/16651 |