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Endogenous labour market imperfection and the HOS model: some counterintuitive trade-theoretic results

Chaudhuri, Sarbajit (2012): Endogenous labour market imperfection and the HOS model: some counterintuitive trade-theoretic results.

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Abstract

This paper introduces endogenous labour market imperfection in an otherwise Heckscher-Ohlin-Samuelson (HOS) model. It demonstrates that this framework satisfies the Stolper-Samuelson theorem and the magnification effect and that it is capable of producing certain trade-theoretic results which are contrary to the standard HOS and the Corden and Findlay (1975) results.

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