Estimating the Economic Effects of Labor Provisions Using a Dynamic GE Model

We use the dynamic general equilibrium model of international trade in Dix-Carneiro, Pessoa, Reyes-Heroles and Traiberman (2023) to simulate the impact of labor provisions that increase workers’ bargaining power. We estimate the resulting changes in employment, real wages, unemployment rates, trade flows, real consumption levels in the short run and in the long run. We simulate a Race to the Top scenario and then compare it to a Race to the Bottom scenario.

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Publication Details

Journal
Staff Working Papers: U.S. International Trade Commission
Published
2025-03-11
DOI
https://doi.org/10.71476/eya8-jq96
Primary Topic
Global trade and economics
Type
article
Field-Weighted Citation Impact
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article

Estimating the Economic Effects of Labor Provisions Using a Dynamic GE Model

Staff Working Papers: U.S. International Trade Commission
Global trade and economics
article

Estimating the Economic Effects of Labor Provisions Using a Dynamic GE Model

article en

Abstract

We use the dynamic general equilibrium model of international trade in Dix-Carneiro, Pessoa, Reyes-Heroles and Traiberman (2023) to simulate the impact of labor provisions that increase workers’ bargaining power. We estimate the resulting changes in employment, real wages, unemployment rates, trade flows, real consumption levels in the short run and in the long run. We simulate a Race to the Top scenario and then compare it to a Race to the Bottom scenario.

Staff Working Papers: U.S. International Trade Commission
United States International Trade Commission (US)
Decent work and economic growth
Openalex Percentile: Top 41%
Global trade and economics
DOIOpen Access PDFOpenAlex
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Estimating the Economic Effects of Labor Provisions Using a Dynamic GE Model · Staff Working Papers: U.S. International Trade Commission (2025) | TGRS Research Map | TGRS