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Does protectionism harm unskilled workers?
Author(s) -
Beladi Hamid,
Marjit Sugata,
Oladi Reza
Publication year - 2018
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/ecpo.12118
Subject(s) - harm , protectionism , economics , construct (python library) , general equilibrium theory , politics , product (mathematics) , labour economics , product market , microeconomics , international economics , law , political science , geometry , mathematics , computer science , programming language , incentive
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.