Trade, technology, and unemployment: the role of endogenous skill formation
Abstractworld, where the two countries (`Europe' and `America') differ in their preferences towards wage inequality. Fair wage considerations compress wage differentials in both countries. European workers are more averse to wage inequality, and Europe is characterized by lower wage differentials and higher unemployment. Allowing for endogenous skill formation, the effects of a globalization shock, global technological change, and a change in the educational capital stock on skill premia and employment levels are derived. In contrast to a model with exogenous factor supplies, international wage and unemployment differentials are affected by global shocks.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 42 (2009)
Issue (Month): 2 (May)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
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- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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3292, CESifo Group Munich.
- Benz, Sebastian & Kohler, Wilhelm, 2011. "Managerial versus production wages: Offshoring, country size and endowments," University of Tuebingen Working Papers in Economics and Finance 13, University of Tuebingen, Faculty of Economics and Social Sciences.
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