NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality

Elhanan Helpman

NBER Working Paper No. 15764
Issued in February 2010
NBER Program(s):   ITI

Recent research has emphasized firm heterogeneity as a source of comparative advantage. Combining this approach with labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and inequality. This paper reviews this approach and reports a number of results from recent studies.

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Document Object Identifier (DOI): 10.3386/w15764

Published: E.Helpman, Labor market frictions as a source of comparative advantage: implications for unemploy- ment and inequality, in Robert M. Solow and Jean-Philippe Tou§ut (eds.), The Shape of the Division of Labour: Nations, Industries and Households (Cheltenham: Edward Elgar Publishing), 2010.

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