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Addendum: The imputed effects of US tariffs on wages

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  • Thompson, Alexi
  • Thompson, Henry

Abstract

This addendum to a recent paper in this journal finding no imputed effect of US tariffs on the average wage separates the skilled wage based on a college degree. The imputed effect attributes all variation in the price of import competing goods to tariffs. Second order error correction estimates based on a factor proportions model with annual data from 1983 to 2019 prove reliable with fixed capital assets imbedding technological progress. Tariffs lower the skilled wage but have no effect on the “unskilled” wage. The implication in the factor proportions model is that tariffs raise the capital return.

Suggested Citation

  • Thompson, Alexi & Thompson, Henry, 2023. "Addendum: The imputed effects of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 564-569.
    • Handle: RePEc:eee:reveco:v:86:y:2023:i:c:p:564-569
    DOI: 10.1016/j.iref.2023.03.045
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    References listed on IDEAS

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    More about this item

    Keywords

    Tariffs; Skilled wages;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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