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Labour market response to globalisation: Spain, 1880-1913

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  • Betrán, Concha
  • Pons, Maria A.
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    Abstract

    This paper analyses the impact of globalisation (trade and migration) on the Spanish labour market between 1880 and 1913 by examining the influence that globalisation factors had on agricultural and industrial wages. Our results show that the nineteenth century grain invasion had a negative impact on agricultural wages, whereas the fall in wheat prices did not benefit industry workers. We also found that migration pushed up real agricultural and industrial wages. As agriculture was the main sector in the economy, the final impact was a wage decrease. The negative impact of trade on agricultural and industrial labour markets partly explains the trade policy response of "integral protection". However, other alternatives that would have been effective in raising living standards, such as migration policy, were not used.

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    File URL: http://www.sciencedirect.com/science/article/B6WFJ-51SFK3J-1/2/527ee1c7ee26268f39f5e9405696e066
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    Bibliographic Info

    Article provided by Elsevier in its journal Explorations in Economic History.

    Volume (Year): 48 (2011)
    Issue (Month): 2 (April)
    Pages: 169-188

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    Handle: RePEc:eee:exehis:v:48:y:2011:i:2:p:169-188

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    Web page: http://www.elsevier.com/locate/inca/622830

    Related research

    Keywords: Labour market Globalisation Trade Tariffs Migration;

    References

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    1. Simpson, James, 1997. "Did tariffs stifle Spanish agriculture before 1936?," European Review of Economic History, Cambridge University Press, vol. 1(01), pages 65-87, April.
    2. O'Rourke, K, 1997. "The European Grain Invasion 1870-1913," Papers 97/02, College Dublin, Department of Political Economy-.
    3. Christian Dustmann & Francesca Fabbri & Ian Preston, 2005. "The Impact of Immigration on the British Labour Market," Economic Journal, Royal Economic Society, vol. 115(507), pages F324-F341, November.
    4. Hatton, Timothy J. & Williamson, Jeffrey G., 1991. "Integrated and Segmented Labor Markets: Thinking in Two Sectors," The Journal of Economic History, Cambridge University Press, vol. 51(02), pages 413-425, June.
    5. David Card, 2005. "Is the New Immigration Really So Bad?," NBER Working Papers 11547, National Bureau of Economic Research, Inc.
    6. Hatton, Timothy J & Williamson, Jeffrey G, 1992. "What Explains Wage Gaps between Farm and City? Exploring the Todaro Model with American Evidence, 1890-1941," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 267-94, January.
    7. Michael Todaro, 1980. "Internal Migration in Developing Countries: A Survey," NBER Chapters, in: Population and Economic Change in Developing Countries, pages 361-402 National Bureau of Economic Research, Inc.
    8. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, January.
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