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ABSTRACT:
This paper analyzes the determinants of protectionism in a small open economy with search frictions. This this environment, jobs generate rents whose access depends on the level of trade protectionn. By raising the domestic price of a good, a government may attract more firms in a particular industry. This raises the probability that workers will find jobs in this sector, and in turn, will benefit from the associated rents. Though simple, this channel may help explain a variety of stylized facts on the structure of trade protection and individual trade-policy preferences.

SUGGESTED CITATION:
Arnaud Costinot, "Jobs, Jobs, Jobs: A "New" Perspective on Protectionism" (February 1, 2008). Department of Economics, UCSD. Paper 2006-05R.
http://repositories.cdlib.org/ucsdecon/2006-05R