Zareh Asatryan (ZEW), Sebastian Braun, Wolfgang Lechthaler, Mariya Mileva (IfW), Catia Montagna (UNIVDUN)
Compensating the Losers of Free Trade. WWWforEurope Working Paper No. 63
WWWforEurope: Welfare, Wealth and Work for Europe, Juni 2014, 35 Seiten
Mit finanzieller Unterstützung von: Österreichische Forschungsförderungsgesellschaft mbH – Österreichische Austauschdienst-GesmbH
Auftraggeber: Europäische Kommission
Studie von: Projekt-Konsortium WWWforEurope
Online seit: 10.06.2014 0:00
Fears of rising wage inequality and job loss loom large in current debates on free trade. Surprisingly, however, there exists little academic research on how to compensate those who lose from free trade. This policy paper reviews the existing theoretical literature on trade and compensation, and derives guidelines on how to design compensation schemes in practice. The existing theoretical literature suggests that active labour market policies, targeted to workers who lose from free trade, are a promising way of compensation. In line with this theoretical recommendation, we find that countries open to free trade also spend more on active labour market policies.
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik
Sprache:Englisch