Economys labor endowment

1
Figure 2.1 The Ricardo-Viner model
(b) Flexible wage rate
(a) Fixed wage rate
Labor demand from numéraire
Labor demand from numéraire
Labor demand from sector one
Labor demand from sector one




Effect of trade protection
Effect of trade protection
wage rate
change in sectoral labor allocation
change in sectoral labor allocation
Economys labor endowment
Economys labor endowment
2
Figure 2.2 The RV model with imperfect labor
mobility
L
Y f(L)
Constant quantity of labor
Input transformation curve
Technology in sector one
-w0 /w
Y
Technology in numéraire
Production Possibility frontier
- p
3
Figure 2.3 Tariffs, endowments, and inequality
t
k
s
South Koreas k
Regression surface for t 3.291 - 0.051 s
0.006 sk - 0.328k Source Table 1 of Dutt-Mittra
(2002), tariff regression with controls