Unemployment in Open Economies studies how domestic labour markets are influenced by a changing international environment. It combines the recently developed search and matching models with standard models of international trade. By this method, the reader gains new insights in the ongoing debate on how globalisation can affect unemployment.
The author develops a collection of models showing that globalisation can be one reason for long-known and well-documented phenomenons on the labour market. She puts emphasis on country differences by studying the role of individual risk behavior and...