{"id":39805,"date":"2020-12-09T15:33:10","date_gmt":"2020-12-09T20:33:10","guid":{"rendered":"https:\/\/carleton.ca\/economics\/?p=39805"},"modified":"2025-06-11T09:08:57","modified_gmt":"2025-06-11T13:08:57","slug":"professors-richard-brecher-and-zhihao-yus-paper-accepted-in-the-review-of-international-economics","status":"publish","type":"post","link":"https:\/\/carleton.ca\/economics\/2020\/professors-richard-brecher-and-zhihao-yus-paper-accepted-in-the-review-of-international-economics\/","title":{"rendered":"Professors Richard Brecher and Zhihao Yu&#8217;s paper accepted in the Review of International Economics!"},"content":{"rendered":"\n<section class=\"w-screen px-6 cu-section cu-section--white ml-offset-center md:px-8 lg:px-14\">\n    <div class=\"space-y-6 cu-max-w-child-5xl  md:space-y-10 cu-prose-first-last\">\n\n            <div class=\"cu-textmedia flex flex-col lg:flex-row mx-auto gap-6 md:gap-10 my-6 md:my-12 first:mt-0 max-w-5xl\">\n        <div class=\"justify-start cu-textmedia-content cu-prose-first-last\" style=\"flex: 0 0 100%;\">\n            <header class=\"font-light prose-xl cu-pageheader md:prose-2xl cu-component-updated cu-prose-first-last\">\n                                    <h1 class=\"cu-prose-first-last font-semibold !mt-2 mb-4 md:mb-6 relative after:absolute after:h-px after:bottom-0 after:bg-cu-red after:left-px text-3xl md:text-4xl lg:text-5xl lg:leading-[3.5rem] pb-5 after:w-10 text-cu-black-700 not-prose\">\n                        Professors Richard Brecher and Zhihao Yu&#8217;s paper accepted in the Review of International Economics!\n                    <\/h1>\n                \n                                \n                            <\/header>\n\n                    <\/div>\n\n            <\/div>\n\n    <\/div>\n<\/section>\n\n<p>Congratulations to <a href=\"https:\/\/carleton.ca\/economics\/people\/brecher-richard-a\/\">Professor Richard Brecher<\/a> and <a href=\"https:\/\/carleton.ca\/economics\/people\/yu-zhihao\/\">Professor Zhihao Yu<\/a>! Their paper titled &nbsp;&#8220;Unemployment Effects of Trade with a Low-Wage Country: A Minimum-Wage Model with Sector-Specific Factors\u201d has been accepted for publication in the <i>Review of International Economics<\/i> &#8211; a leading journal in the field of International Economics.<\/p>\n\n\n\n<p><strong>Abstract<\/strong><\/p>\n\n\n\n<p>Contrary to conventional wisdom, this paper shows that a high-wage economy can paradoxically reduce its level of aggregate unemployment by engaging in international trade with a low-wage country. We demonstrate this possibility after introducing a minimum wage into the basic specific-factor model (with immobile capital and mobile labor), even though the opposite result is known to arise in the longer-run framework of the standard Heckscher-Ohlin-Samuelson model (with both inputs mobile). Our result provides a cautionary note for public-policy discussions that promote trade barriers as a way to reduce unemployment.<span class=\"Apple-converted-space\">&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Congratulations to Professor Richard Brecher and Professor Zhihao Yu! Their paper titled &nbsp;&#8220;Unemployment Effects of Trade with a Low-Wage Country: A Minimum-Wage Model with Sector-Specific Factors\u201d has been accepted for publication in the Review of International Economics &#8211; a leading journal in the field of International Economics. Abstract Contrary to conventional wisdom, this paper shows [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":39807,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-39805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":{"cu_post_thumbnail":""},"_links":{"self":[{"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/posts\/39805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/comments?post=39805"}],"version-history":[{"count":1,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/posts\/39805\/revisions"}],"predecessor-version":[{"id":39808,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/posts\/39805\/revisions\/39808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/media\/39807"}],"wp:attachment":[{"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/media?parent=39805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/categories?post=39805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carleton.ca\/economics\/wp-json\/wp\/v2\/tags?post=39805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}