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• W4220912652 abstract "Abstract We explore how different investment frictions affect the patterns of responses of labour markets to tariff cuts. To investigate these patterns, we formulate a multi-sector dynamic model featuring capital and labour adjustment costs that we fit to Argentine data. Using counterfactual simulations of a tariff decline in the textile sector, we show that capital adjustment can create long-run responses of real wages that are larger than the short-run responses. This happens as textile firms disinvest during the transition. We also show that the reduction of tariffs on capital inputs boosts investment and real wages across sectors." @default.
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• W4220912652 date "2022-03-12" @default.
• W4220912652 modified "2023-10-16" @default.
• W4220912652 title "Patterns of Labour Market Adjustment to Trade Shocks with Imperfect Capital Mobility" @default.
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• W4220912652 doi "https://doi.org/10.1093/ej/ueac012" @default.
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