Globalization with labor market frictions and non-scale growth

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GRIEBEN, Wolf-Heimo, 2006. Globalization with labor market frictions and non-scale growth

@techreport{Grieben2006Globa-11939, series={Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit}, title={Globalization with labor market frictions and non-scale growth}, year={2006}, number={06/09}, author={Grieben, Wolf-Heimo} }

2011-03-25T09:41:14Z Grieben, Wolf-Heimo 2006 Grieben, Wolf-Heimo unknown deposit-license Globalization with labor market frictions and non-scale growth 2011-03-25T09:41:14Z application/pdf We analyze the interaction between globalization and labor market frictions in a dynamic general equilibrium North-South non-scale growth model with endogenous Northern innovation and endogenous Southern imitation. The employment, growth and relative-wage effects of globalization are shown to depend qualitatively on the degree of Northern labor market frictions. We demonstrate that Northern countries with particular severe labor market frictions benefit from globalization in terms of employment and growth. We also analyze whether stricter intellectual property rights protection in the South, rising R&D subsidies in the North or an increase in Northern labor market flexibility alleviate or aggravate globalization effects. deu

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