Labour Market Effects of International Trade When Mobility is Costly

Bibliographic Data

ID9718489
AuthorsDamoun Ashournia (University of Oxford, corresponding author)
Year2018
Volume128
Issue616
Pages3008-3038
Publication date2018-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12543
OpenAlexW2296100012
LanguageEN
Citations received2
References cited20

I build and estimate a dynamic structural model of sectoral choices with heterogeneous workers accumulating imperfectly transferable human capital. Utility costs provide an additional barrier to mobility. Estimated by simulated minimum distance on administrative data covering the population of Danish workers, costs are found to be in the range from 10% to 19% of average annual wages. Removing permanent unobserved heterogeneity increases the utility costs by an order of magnitude. I show that both the imperfect transferability of human capital and the utility costs are important in explaining the slow adjustment of the labour market following shocks to the economy

Capital (architecture · Danish · Economics · Human capital · Imperfect · Labour economics · Order (exchange · Population · Transferability · Economic Policies and Impacts · Global trade and economics · Labor market dynamics and wage inequality

Tools

Open DOISci-Hub