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Explaining Rising Inequality: Skill-Biased Technical Change And North-South Trade

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  • Nathalie Chusseau
  • Michel Dumont
  • Jo�l Hellier

Abstract

We review the 'skill-biased technological change (SBTC) versus North-South trade (NST)' debate in order to explain widening wage inequality between skilled and unskilled workers. The traditional explanations based on exogenous SBTC and on the North-South Heckscher-Ohlin-Samuelson approach, as well as the early estimates that diagnosed a clear prevalence of the former, are firstly exposed and discussed. A presentation is then made of the recent theoretical literature that endogenizes SBTC, introduces new channels of impacts from NST, and combines both explanations. Finally, the current estimates show that (i) both explanations are relevant, (ii) their impacts differ according to industries and countries, (iii) outsourcing is the main vector of impact from NST and (iv) SBTC and NST interact. Copyright � 2008 The Authors Journal compilation � 2008 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 22 (2008)
Issue (Month): 3 (07)
Pages: 409-457

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Handle: RePEc:bla:jecsur:v:22:y:2008:i:3:p:409-457

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Cited by:
  1. Yoshinori Kurokawa & Jiaren Pang & Yao Tang, 2013. "Exchange Rate Regimes and Nominal Wage Comovements in a Dynamic Ricardian Model," Tsukuba Economics Working Papers 2013-005, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  2. Daria Ciriaci, 2011. "Intangible resources: the relevance of training for European firms’ innovative performance," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-06, Institute of Prospective Technological Studies, Joint Research Centre.
  3. Andrea Vaona, 2013. "Countervailing inequality effects of globalization and renewable energy generation in Argentina," Working Papers 12/2013, University of Verona, Department of Economics.
  4. Alberto Behar, 2013. "The Endogenous Skill Bias of Technical Change and Inequality in Developing Countries," IMF Working Papers 13/50, International Monetary Fund.
  5. Roberto Antonietti & Massimo Loi, 2014. "The demand for foreign languages in Italian manufacturing," Working Papers 57, AlmaLaurea Inter-University Consortium.
  6. Yoshinori Kurokawa, 2010. "A Survey of Trade and Wage Inequality: Anomalies, Resolutions, and New Trends," Tsukuba Economics Working Papers 2010-007, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  7. Nathalie Chusseau & Michel Dumont, 2012. "Growing Income Inequalities in Advanced," Working Papers hal-00993359, HAL.
  8. Nathalie Chusseau & Michel Dumont, 2012. "Growing income inequalities in advanced countries," Working Papers 260, ECINEQ, Society for the Study of Economic Inequality.
  9. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
  10. Michel Dumont, 2008. "Working Paper 22-08 - Wages and employment by level of education and occupation in Belgium," Working Papers 0822, Federal Planning Bureau, Belgium.
  11. Nathalie Chusseau & Joel Hellier, 2012. "Inequality in emerging countries," Working Papers 256, ECINEQ, Society for the Study of Economic Inequality.
  12. Daria Ciriaci & Alessandro Muscio, 2011. "University choice, research quality and graduates' employability: Evidence from Italian national survey data," Working Papers 48, AlmaLaurea Inter-University Consortium.
  13. Michel Dumont & Nikolina Stojanovska & Ludo Cuyvers, 2011. "World inequality, globalisation, technology and labour market institutions," International Journal of Manpower, Emerald Group Publishing, vol. 32(3), pages 257-272, July.
  14. Ritzen, Jo & Zimmermann, Klaus F., 2013. "A Vibrant European Labor Market with Full Employment," IZA Policy Papers 73, Institute for the Study of Labor (IZA).
  15. Das, Gouranga, 2012. "Fragmentation in Production, Vertical Integration and Wage Inequality: A Theoretical Note," MPRA Paper 47455, University Library of Munich, Germany.
  16. Joël Hellier, 2012. "Working poor trajectories," Working Papers 280, ECINEQ, Society for the Study of Economic Inequality.
  17. Joël Hellier, 2012. "The North-South HOS Model, inequality and globalization," Working Papers 244, ECINEQ, Society for the Study of Economic Inequality.
  18. Nathalie Chusseau & Joël Hellier, 2012. "Globalization and Inequality: Where do we stand?," Working Papers 279, ECINEQ, Society for the Study of Economic Inequality.
  19. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni dell'Istituto di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  20. Joël Hellier, 2012. "North-South Globalization and Inequality," Working Papers 273, ECINEQ, Society for the Study of Economic Inequality.
  21. Niklas Potrafke, 2014. "The Evidence on Globalization," CESifo Working Paper Series 4708, CESifo Group Munich.

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