Unemployment in an Interdependent World
研究一国劳动力市场制度变化（如提高失业救济）如何通过贸易溢出效应影响他国失业，发现摩擦增加会推高国内外失业，且工资刚性会加剧这一效应。
How do changes in labor market institutions, like more generous unemployment benefits in one country, affect labor market outcomes in other countries? We set up a two-country Armingtonian trade model with frictions on the goods and labor markets. Contrary to the literature, higher labor market frictions increase unemployment at home and abroad. The strength of the spillover depends on the relative size of countries and on trade costs. It is exacerbated when real wages are rigid. Using panel data for 20 rich OECD countries, and controlling for institutions as well as for business cycle comovement, we confirm our theoretical predictions.