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Another Nail in the Coffin? Or Can the Trade Based Explanation of Changing Skill Structures Be Resurrected?

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Author Info
 Desjonqueres, Thibaut
Machin, Stephen
Van Reenen, John

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Abstract

The skill structure of wages and employment has altered markedly in recent years. In some countries (most notably the UK and the US) wage inequality has risen sharply and in most countries relative demand has shifted unfavourably against the less skilled. In this paper we reassess the evidence that rising international competition from developing countries is the crucial factor underpinning these changes. Our results, based on newly constructed internationally comparable industry data, find little support for the predictions of the basic Heckscher-Ohlin (H-O) trade model. Copyright 1999 by The editors of the Scandinavian Journal of Economics.

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Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 101 (1999)
Issue (Month): 4 (December)
Pages: 533-54
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Handle: RePEc:bla:scandj:v:101:y:1999:i:4:p:533-54

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  1. Haskel, Jonathan & Slaughter, Matthew, 1999. "Trade, Technology and UK Wage Inequality," CEPR Discussion Papers 2091, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Francisco Gallego, 2006. "Skill Premium in Chile: Studying the Skill Bias Technical Change Hypothesis in the South," Working Papers Central Bank of Chile 363, Central Bank of Chile. [Downloadable!]
  3. Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute. [Downloadable!]
  4. Giulia Faggio & Stephen Nickell, 2005. "Inactivity Among Prime Age Men in the UK," CEP Discussion Papers dp0673, Centre for Economic Performance, LSE. [Downloadable!]
  5. Haskel, Jonathan, 2000. "The Trade and Labour Approaches to Wage Inequality," CEPR Discussion Papers 2476, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Ekholm, Karolina & Ulltveit-Moe, Karen-Helene, 2001. "Relative Wages and Trade-Induced Changes in Technology," CEPR Discussion Papers 2677, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Jorge Saba Arbache, 1998. "How do Economic Reforms affect the Structure of Wages? The Case of Brazilian Manufacturing, 1984-1996," Studies in Economics 9817, Department of Economics, University of Kent. [Downloadable!]
  8. J.Peter Neary, 2003. "Globalisation and Market Structure," DNB Staff Reports (discontinued) 100, Netherlands Central Bank. [Downloadable!]
  9. Stephen Nickell, 2003. "Poverty and Worklessness in Britain," CEP Discussion Papers dp0579, Centre for Economic Performance, LSE. [Downloadable!]
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  10. John Van Reenen, 2001. "The new economy: reality and policy," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 307-336, September. [Downloadable!]
  11. Ekholm, Karolina & Ulltveit-Moe, Karen-Helene, 2007. "A New Look at Offshoring and Inequality: Specialization Versus Competition," CEPR Discussion Papers 6402, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  12. Neary, J Peter, 2001. "Competition, Trade and Wages," CEPR Discussion Papers 2732, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  13. Neary, J Peter, 2002. "Foreign Competition and Wage Inequality," CEPR Discussion Papers 3420, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Hansson, Pär, 1999. "Relative Demand for Skills in Swedish Manufacturing: Technology or Trade?," Working Paper Series 152, Trade Union Institute for Economic Research. [Downloadable!]
  15. Borghans L. & Weel B. ter, 2000. "How computerizaton changes the UK Labour Market: The Facts viewed from a new Perspective," Working Papers 010, Maastricht : ROA, Researchcentrum voor Onderwijs en Arbeidsmarkt. [Downloadable!]
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  16. Jorge Saba Arbache, 2001. "Trade Liberalisation and Labor Markets in Developing Countries: Theory and Evidence," Studies in Economics 0112, Department of Economics, University of Kent. [Downloadable!]
  17. Sylvain Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "On the Mechanics of Trade-Induced Structural Transformation," Cahiers de recherche 0529, CIRPEE. [Downloadable!]
  18. Marilza Pereira Valentine & Erik Alencar de Figueiredo & Sinézio Fernades Maia & Adriano Nascimento da Paixão, 2003. "Impactos da Política Monetária Sobre os Níveis de Emprego no Brasil Pós-Plano Real: uma Abordagem Quantitativa," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] f07, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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