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A Note on Unemployment of Unskilled Labor due to COVID-19 led Restriction on Migration and Trade

Author

Listed:
  • Mandal Biswajit

    (Department of Economics & Politics, Visva-Bharati University, Santiniketan, India)

  • Chaudhuri Saswati

    (Department of Economics, St. Xavier’s College, Kolkata, India)

  • Prasad Alaka Shree

    (Department of Economics & Politics, Visva-Bharati University, Santiniketan, India)

Abstract

To combat COVID-19 the entire world has resorted to global lockdown implying restriction on international labor migration and trade. This paper aims to check the effect of such restrictions on the unemployment of unskilled labor in the source country. In competitive general equilibrium framework with three goods and four factors, restriction on migration raises unemployment for given factor intensity. The results remain same even in a slightly different structure of the economy. In case of trade restriction, however, the rise or fall in unemployment depends on both the structure of the economy and the factor intensity assumption.

Suggested Citation

  • Mandal Biswajit & Chaudhuri Saswati & Prasad Alaka Shree, 2020. "A Note on Unemployment of Unskilled Labor due to COVID-19 led Restriction on Migration and Trade," Review of Economics, De Gruyter, vol. 71(3), pages 223-236, December.
    • Handle: RePEc:lus:reveco:v:71:y:2020:i:3:p:223-236:n:2
    DOI: 10.1515/roe-2020-0030
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    Citations

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    Cited by:

    1. Mahata, Sushobhan & Khan, Rohan Kanti & Chaudhuri, Sarbajit & Nag, Ranjanendra Narayan, 2022. "COVID-19 lockdown, family migration and unemployment in a gendered society," Research in Economics, Elsevier, vol. 76(3), pages 218-236.
    2. Biswajit Mandal & Arya Roy Bardhan & Saswati Chaudhuri, 2024. "Controlling Environmental Pollution, Sectoral Composition and Factor Prices: A H–O and SFM Hybrid Approach," Contributions to Economics, in: Sugata Marjit & Biswajit Mandal (ed.), International Trade, Resource Mobility and Adjustments in a Changing World, chapter 0, pages 259-291, Springer.
    3. Rohan Kanti Khan & Sushobhan Mahata & Ranjanendra Narayan Nag, 2023. "Pandemic Crisis, Contact Intensity and Gender Disparity in a Developing Economy," Economic Papers, The Economic Society of Australia, vol. 42(1), pages 30-53, March.

    More about this item

    Keywords

    general equilibrium; COVID-19; migration; trade; unemployment;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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