Trade, Technology, and Wages: General Equilibrium Mechanics
AbstractThis paper highlights analytical reasons why we believe trade and technology are linked to wagemovements in general, and how we should organize our examination of the recent episode of wage andemployment erosion in the OECD countries. We start with a graphic tour through the mechanics ofgeneral equilibrium theory on trade and wages. This provides a set of implied relationships betweenwages and factor intensity trends that, together, provide a casual test of the consistency of positedrelationships with actual trends. Numeric analysis and a review of the general equilibrium empiricalliterature follow the theoretical overview.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 108 (1998)
Issue (Month): 450 (September)
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Other versions of this item:
- Joseph F. Francois & Douglas Nelson, 1998. "Trade, Technology, and Wages: General Equilibrium Mechanics," Tinbergen Institute Discussion Papers 98-058/2, Tinbergen Institute.
- Francois, Joseph & Nelson, Doug R, 1998. "Trade, Technology and Wages: General Equilibrium Mechanics," CEPR Discussion Papers 1919, C.E.P.R. Discussion Papers.
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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