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Labor Market Effects of Global Supply Chain Disruptions (Inglês)

This paper examines the labor market consequences of recent global supply chain disruptions induced by COVID-19. Specifically, it considers a temporary increase in international trade costs similar to the one observed during the pandemic and analyzes its effects on labor market outcomes using a quantitative trade model with downward nominal wage rigidities. Even omitting any health-related impacts of the pandemic, the increase in trade costs leads...
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