Domestic institutions can have profound effects on international trade. This chapter reviews
the theoretical and empirical underpinnings of this insight. Particular attention is paid to …

This article reviews the recent theoretical literature on heterogeneous firms and trade, which
emphasizes firm selection into international markets and reallocations of resources across …

This paper develops a new framework for examining the determinants of wage distributions
that emphasizes within‐industry reallocation, labor market frictions, and differences in …

This article develops a model of noncompetitive labor markets in which high-wage (good)
and low-wage (bad) jobs coexist. Minimum wages and unemployment benefits shift the …

We study a two-country, two-sector model of international trade in which one sector
produces homogeneous products and the other produces differentiated products. Both …

We introduce search unemployment into Melitz's trade model. Firms' monopoly power on
product markets leads to strategic wage bargaining. Solving for the symmetric equilibrium …

We argue that trade economists should begin to seriously consider environments in which
unemployment is carefully modeled. We introduce such a model, derive several results, and …

Tracking individual workers across jobs after Brazil's trade liberalization in the 1990s shows
that tariff cuts trigger worker displacements, but neither exporters nor comparative …

This paper documents a robust empirical regularity: in the long-run, higher trade openness
is associated with a lower structural rate of unemployment. We establish this fact using:(i) …

This paper develops a simple model of international trade with intermediation. We consider
an economy with two islands and two types of agents, farmers and traders. Farmers can …