FIW Working Papers | 2009-01
Unemployment and International Trade: The Effects of Minimum wages and non-Traded Goods in Models representing Western Industrialized Countries adn China (in German)
In this paper we investigate "integrated equilibria" of two-country models. Extending the basic framework non-traded goods as well as minimum wages are introduced and their effects on the models' results are studied. Finally, the consequences of three types of labor "shocks" are analyzed.