An edition of Making sense of Bolkestein-bashing (2005)

Making sense of Bolkestein-bashing

trade liberalization under segmented labor markets

Making sense of Bolkestein-bashing
Gilles Saint-Paul, Gilles Sain ...
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Last edited by MARC Bot
December 13, 2020 | History
An edition of Making sense of Bolkestein-bashing (2005)

Making sense of Bolkestein-bashing

trade liberalization under segmented labor markets

"Trade liberalization is often met with sharp opposition. Recent examples include the so-called "Bolkestein" directive, which allows service providers from a given EU member to temporarily work in another member country. One way to view such a reform is that it simply widens the range of goods that are tradeable. This kind of reform is analyzed in a two-country Dornbusch-Fischer-Samuelson style model, where labor cannot relocate to another sector upon a non expected increase in the range of goods that can be traded. The effect of liberalization on the terms of trade tends to favor the poorer country (the "East"), if (as assumed) the most sophisticated goods are tradeable before reform. Second, under ex-post liberalization, there exists a class of workers in the West who are harmed because they face competition from Eastern workers and cannot relocate to other activities. But if the East's economy is relatively small, their wage losses are not very large. Things are different, however, if there exist asymmetries in labor market institutions, such that upon reform, labor can relocate in the East but not in the West. Some workers in the West can then experience very large wage losses. Thus, rigid labor markets in the West magnify opposition to reform there"--Forschungsinstitut zur Zukunft der Arbeit web site.

Publish Date
Publisher
IZA
Language
English

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Book Details


Edition Notes

Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 6/14/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.

Published in
Bonn, Germany
Series
Discussion paper ;, no. 1618, Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;, no. 1618

Classifications

Library of Congress
HD5701

The Physical Object

Format
Electronic resource

ID Numbers

Open Library
OL3477803M
LCCN
2005617579

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December 13, 2020 Edited by MARC Bot import existing book
February 13, 2010 Edited by WorkBot add more information to works
December 10, 2009 Created by WorkBot add works page