ENDOGENOUS LABOR SUPPLY IN INTERNATIONAL-TRADE THEORY - 2 ALTERNATIVE MODELS

This paper presents two models of endogenous labor supply adjustment. In the first, traditional setup, work hours are flexible and the number of workers is fixed. In the second, work hours are fixed and labor force participation is endogenous. For both models, the impacts of world price, capital endowment, tariff, and technology changes on labor supply, output, and national income are examined, and various 'perverse' responses are highlighted. © 1991.