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Abstract

This paper highlights analytical reasons why we believe trade and technology are linked to wage movements in general, and how we should organize our examination of the recent episode of wage and employment erosion in the OECD countries. We start with a graphic tour through the mechanics of general equilibrium theory on trade and wages. This provides a set of implied relationships between wages and factor intensity trends that, together, provide a casual test of the consistency of posited relationships with actual trends. Numeric analysis and a review of the general equilibrium empirical literature follow the theoretical overview.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 108 (1998)
Issue (Month): 450 (September)
Pages: 1483-99

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Handle: RePEc:ecj:econjl:v:108:y:1998:i:450:p:1483-99

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Related research

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Find related papers by JEL classification:

• F11 - International Economics - - Trade - - - Neoclassical Models of Trade
• F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
• J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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Cited by:

1. Naude, Willem & Coetzee, Rian, 2004. "Globalisation and inequality in South Africa: modelling the labour market transmission," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 911-925, December.
2. Neary, J Peter, 2001. "Competition, Trade and Wages," CEPR Discussion Papers 2732, C.E.P.R. Discussion Papers.
   
   • J. Peter Neary, 2000. "Competition, Trade and Wages," Working Papers 200020, School Of Economics, University College Dublin.
3. Beladi, Hamid & Chao, Chi-Chur, 2010. "Downsizing, wage inequality and welfare in a developing economy," Research in Economics, Elsevier, vol. 64(4), pages 224-228, December.
4. Yang, Y. & Tyers, R., 1999. "The Asian Recession and Northern Labour Markets," ANU Working Papers in Economics and Econometrics 1999-372, Australian National University, College of Business and Economics, School of Economics.
   
   • Rod Tyers & Yongzheng Yang, 2004. "The Asian Recession and Northern Labour Markets," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 58-75, 03.
   • Yang, Y. & Tyers, R., 1999. "The Asian Recession and Northern Labour Markets," Papers 372, Australian National University - Department of Economics.
5. Lisandro Abrego & John Whalley, 2002. "Decomposing Wage Inequality Change Using General Equilibrium Models," University of Western Ontario, Economic Policy Research Institute Working Papers 20022, University of Western Ontario, Economic Policy Research Institute.
   
   • Lisandro Abrego & John Whalley, 2002. "Decomposing Wage Inequality Change Using General Equilibrium Models," NBER Working Papers 9184, National Bureau of Economic Research, Inc.
6. Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute.
7. Niven Winchester & David Greenaway & Geoffrey V. Reed, 2006. "Skill Classification and the Effects of Trade on Wage Inequality," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 287-306, July.
8. Willem Molle, 2002. "Globalization, Regionalism and Labour Markets: Should We Recast the Foundations of the EU Regime in Matters of Regional (Rural and Urban) Development?," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 161-172.
9. Thierfelder, Karen & Robinson, Sherman, 2002. "Trade and tradability," TMD discussion papers 93, International Food Policy Research Institute (IFPRI).
10. Lisandro Abrego & John Whalley, 1999. "The Choice of Structural Model in Trade-Wages Decompositions," CSGR Working papers series 34/99, Centre for the Study of Globalisation and Regionalisation (CSGR), University of Warwick.
    
    • Abrego, Lisandro & Whalley, John, 2000. "The Choice of Structural Model in Trade-Wages Decompositions," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 462-77, August.
    • Lisandro Abrego & John Whalley, 1999. "The Choice of Structural Model in Trade-Wages Decompositions," NBER Working Papers 7312, National Bureau of Economic Research, Inc.
11. Niven Winchester, 2006. "Trade and Rising Wage Inequality: What can we learn from a Decade of Computable General Equilibrium Analysis?," Working Papers 0606, University of Otago, Department of Economics, revised Oct 2006.
12. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
13. Fontagne, Lionel & Mirza, Daniel, 2007. "International trade and rent sharing among developed and developing countries," Economic Modelling, Elsevier, vol. 24(3), pages 523-558, May.
14. Ethier, Wilfred J., 2005. "Globalization, globalisation: Trade, technology, and wages," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 237-258.

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