The Impact of Globalisation with Rigid Labour Markets

Seidel, Tobias (2007): The Impact of Globalisation with Rigid Labour Markets. Dissertation, LMU München: Volkswirtschaftliche Fakultät

Abstract

This dissertation examines the impact of globalisation when labour markets are imperfect. Chapters 2 and 3 start with an overview about recent trends in globalisation and provide evidence for labour market rigidity in developed countries. Chapter 4 studies minimum wages in a simple factor allocation model and derives basic results that are generalised in a Heckscher-Ohlin model in chapter 5. Chapter 6 analyses wage rigidity in a specific factors model. Finally, imperfect labour markets are implemented in a new economic geography framework to show that unemployment fosters agglomeration of economic activity. The main message is that labour market rigidity causes welfare losses from trade in a number of theoretical models. It is argued that wage subsidies can help to overcome both the inefficiency and the distribution problem.

• Dokumententyp: Dissertationen (Dissertation, LMU München)
• Keywords: Globalisation, Imperfect Labour Markets, Trade, New Economic Geography
• Themengebiete: 300 Sozialwissenschaften ; 300 Sozialwissenschaften > 330 Economics
• Fakultäten: Volkswirtschaftliche Fakultät
• Sprache der Hochschulschrift: Englisch
• Datum der mündlichen Prüfung: 25. Januar 2007
• 1. Bericht­erstatter:in: Sinn, Hans-Werner