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Does protectionism harm unskilled workers?

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Listed:
  • Hamid Beladi
  • Sugata Marjit
  • Reza Oladi

Abstract

In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the unskilled wages. This result has interesting political‐economic implications.

Suggested Citation

  • Hamid Beladi & Sugata Marjit & Reza Oladi, 2018. "Does protectionism harm unskilled workers?," Economics and Politics, Wiley Blackwell, vol. 30(3), pages 444-450, November.
    • Handle: RePEc:bla:ecopol:v:30:y:2018:i:3:p:444-450
    DOI: 10.1111/ecpo.12118
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    References listed on IDEAS

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    Cited by:

    1. Sugata Marjit & Manoj Pant & Sugandha Huria, 2020. "Unskilled immigration, technical progress, and wages—Role of the household sector," Review of International Economics, Wiley Blackwell, vol. 28(1), pages 235-251, February.
    2. John Gilbert & Onur A. Koska & Reza Oladi, 2022. "Labor‐eliminating technology, wage inequality, and trade protectionism," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(6), pages 1249-1265, December.
    3. Thompson, Alexi & Thompson, Henry, 2021. "The imputed effect of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 191-197.
    4. Jiancai Pi & Yuhan Luo, 2024. "Climate change and wage inequality," Journal of Economics, Springer, vol. 143(3), pages 279-303, December.
    5. Leonard F. S. Wang & Ji Sun, 2023. "Corporate profit tax, firm entry with unemployment, and income inequality," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 380-392, April.
    6. Pi Jiancai & Zhao Runzhi, 2020. "Corporate Social Responsibility and Wage Inequality," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(3), pages 1-16, July.

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