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Journal of Economic Integration 2006 March;21(1) :181-197.
Labor Heterogeneity and Trade Liberalization

Christian Wiermann 

University of Konstanz
Copyright ©2006 Journal of Economic Integration

This paper identies the decreasing heterogeneity in labor as one of the driving forces ofsecular trade liberalization. A decrease in the sector-specificity of human capital gives rise to a decline of protectionist demands since the workers’ stakes in trade policy resemble more and more the social welfare consequences of trade policy. Since the process of labor homogenization appears to be irreversible, we arrive at the conclusion that protectionist trade polices will soon become an obsolescent model.

JEL Classifications: D72, F13

Keywords: Labor Heterogeneity | Labor Mobility | Trade Liberalization | Political Economy
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