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Quoc hung Nguyen
''Wealth effects and cross-country co-movement of labor''
( 2011, Vol. 31 No.2 )
This paper quantitatively shows that the wealth effect on leisure plays a determining role in generating negative co-movement of employment across countries. Hence, even without restrictions on international capital mobility, a positive cross-country correlation of labor can be obtained by simply incorporating into standard models preferences that rule out the wealth effect.
Keywords: International Business Cycles, Wealth Effects, GHH Preferences
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
F4 - Macroeconomic Aspects of International Trade and Finance: General
Manuscript Received : Jan 21 2011 Manuscript Accepted : May 12 2011

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