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Endogenous labor supply and international trade
Author(s) -
Ago Takanori,
Morita Tadashi,
Tabuchi Takatoshi,
Yamamoto Kazuhiro
Publication year - 2017
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/ijet.12118
Subject(s) - economics , welfare , technological change , general equilibrium theory , construct (python library) , labour economics , international economics , microeconomics , macroeconomics , market economy , computer science , programming language
We construct an international trade model with an elastic labor supply and analyze the impacts of technological progress on the equilibrium outcomes of working hours and economic welfare. We show that the labor supply is inverted U‐shaped with respect to technological progress. We also show that welfare is U‐shaped with respect to trade costs whereas welfare and technological progress are positively related. We then show that working hours in developed countries are longer in the first stages of development, but shorter in the second stages of development.