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Yenhuang Chen and Lihong Zhao
''Wage Subsidy and Sector-Specific Unemployment: A New Economic Geography Approach''
( 2009, Vol. 29 No.1 )
This paper uses a new economic geography approach to examine the effects of wage subsidy, which is undertake to bolster up the industrial development. This paper also highlights the effects of trade liberalization and international capital mobility. In particular, sector-specific unemployment is introduced in the monopolistically competitive sector of the home country.
JEL: F2 - International Factor Movements and International Business: General
Manuscript Received : Jun 11 2008 Manuscript Accepted : Mar 25 2009

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