Wednesday, March 25, 2026 11:00 - 12:00

SAL 1.04, 1st Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH

About this event

How does an industrial policy war affect worker inequality? How does this effect change over time? We develop a model to study how industrial policy affects the dynamics of the joint distribution of firms and workers, in the open economy. The model features two skill classes of workers, in addition to multiple sectors with varying skill intensities in production. Heterogeneous firms make decisions to offshore their production of inputs, in addition to export participation. Different industrial policy shocks generate alternative transmission channels in the model; after interacting with the dynamic decisions of firm and households, they can alter a country?s comparative advantage over time. While most industrial policies can serve to benefit the locally protected skill class of workers, these effects may take time to eventuate. Similarly, the costs these policy actions impose on the non-protected worker class may diminish over time.

Participants are expected to adhere to the CEP Events Code of Conduct.

Directions

This event will take place in SAL 1.04, 1st Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.

The building is labelled SAL on the LSE campus map. You can also find us on Google Maps. For further information, go to contact us.

International Economics Workshops are part of the CEP's Trade programme.