NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Carsten Eckel

University of Munich
Department of Economics
Ludwigstr. 28 VG
80539 Munich
Germany
Tel: +49 (89) 2180-5824

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Munich

NBER Working Papers and Publications

September 2017Too Much of a Good Thing? Labor Market Imperfections as a Source of Exceptional Exporter Performance
with Stephen R. Yeaple: w23834
Ex-post firm heterogeneity can result from different strategies to overcome labor market imperfections by ex-ante identical firms—with far-reaching consequences for the welfare effects of trade. With asymmetric information about workers’ abilities and costly screening, in equilibrium some firms screen and pay wages based on the true productivity of their workers, and some firms do not screen and pay wages based on the average productivity of their workforce. Screening firms are larger, attract better workers and pay lower effective wages. This results in excessive consumption of resources by large firms relative to the social optimum. Trade liberalization then has an ambiguous effect on aggregate welfare: lower trade costs improve access to foreign goods but also exacerbate the labor marke...
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us