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Full-Text Articles in Social and Behavioral Sciences
Informality, Tariffs And Wealth, Michele Di Maio, Nelson Correa
Informality, Tariffs And Wealth, Michele Di Maio, Nelson Correa
Michele Di Maio
No abstract provided.
Labour Mobility And The Redistributive Effects Of Trade Integration, Carlo Devillanova, Michele Di Maio, Pietro Vertova
Labour Mobility And The Redistributive Effects Of Trade Integration, Carlo Devillanova, Michele Di Maio, Pietro Vertova
Michele Di Maio
This paper addresses the role of mobility costs in shaping the effects of trade integration on wage inequality and welfare. We present a three-factor, two-sector model in which the production technology exhibits capital-skill complementarity and the cost of moving across sectors differs between unskilled and skilled workers. Results show that trade integration increases aggregate welfare, but it also raises wage inequality, both within and across skill categories. We also model a public re-training program, financed by a proportional tax levied on skilled workers, which reduces the mobility cost of unskilled workers. We show that even if the re-training programme entails …
Uncertainty, Trade Integration And The Optimal Level Of Protection In A Ricardian Model With A Continuum Of Goods, Michele Di Maio
Uncertainty, Trade Integration And The Optimal Level Of Protection In A Ricardian Model With A Continuum Of Goods, Michele Di Maio
Michele Di Maio
This paper analyzes the effects of increasing trade integration on individual utility when the international specialization pattern is stochastic, i.e. when the range of goods each country produces depends on the realization of a random variable. Using a Ricardian continuum of goods model it is shown that under uncertainty a trade-off emerges. As in the standard deterministic model, higher trade integration reduces prices and increases expected real income. However, higher trade integration, reducing the number of active sectors in the economy, also increases the displacement cost the worker suffers when the sector she is employed into has to close down …