Abstract

The question of the effects of international trade on employment and income distribution has already generated a lot of analysis. The answers usually given sterm from two types of approaches: either, for employment, calculation based on partial equilibrium analysis: or, for incomes, calculations made in a general equilibrium framework but with a neo classical approach where the whole of available factors in particular labour is used. The present paper considers a model where international flows generate unemployment due to some rigidities related to the existence of a minimal wage. It compares the effects on employment, and incomes generated by the model, to those traditionally obtained by partial or neo classical equilibrium analysis. Comparison shows how fragile axe predictions, according to the assumptions made. A key factor in particular appears to be the mobility of labour between unskilled and skilled positions. A theorem is proven showing that, in case of progressive liberalization of trade between two zones, there exists a maximal speed of opening - depending on the mobility of labour - which allows to maintain the global income of each zone, despite the fact some unemployment appears.

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