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Trade and wages: choosing among alternative explanations

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  • Jagdish Bhagwati
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    Abstract

    North-South trade competition cannot be an explanation for the adverse trend for U.S. unskilled wages. If wage competition in these industries from abroad pushed down wages, then prices of these goods should also have gone down, and they have not. Also VERs and anti-dumping measures have protected exactly the wage earners supposedly threatened.

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    Bibliographic Info

    Article provided by Federal Reserve Bank of New York in its journal Economic Policy Review.

    Volume (Year): (1995)
    Issue (Month): Jan ()
    Pages: 42-47

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    Handle: RePEc:fip:fednep:y:1995:i:jan:p:42-47:n:v.1.no.1

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    Related research

    Keywords: International trade ; Labor turnover ; Labor unions ; Wages;

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    Cited by:
    1. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Investment, Outsourcing and Relative Wages," NBER Working Papers 5121, National Bureau of Economic Research, Inc.
    2. Dumont, Michel & Rayp, Glenn & Willemé, Peter, 2012. "The bargaining position of low-skilled and high-skilled workers in a globalising world," Labour Economics, Elsevier, vol. 19(3), pages 312-319.
    3. Gaston, N., 2000. "Unions and the Decentralisation of Collective Bargaining in a Globalising World," ISER Discussion Paper 0495, Institute of Social and Economic Research, Osaka University.
    4. William Blankenau, 1999. "A Welfare Analysis of Policy Responses to the Skilled Wage Premium," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(4), pages 820-849, October.
    5. Zohal Hessami & Thushyanthan Baskaran, 2013. "Has Globalization Affected Collective Bargaining? An Empirical Test, 1980-2009," Working Paper Series of the Department of Economics, University of Konstanz 2013-02, Department of Economics, University of Konstanz.
    6. Derek Pyne, 1996. "Revealed Preference Tests of the Stolper-Samuelson Theorem," Working Papers 1997_01, York University, Department of Economics.
    7. Esquivel, Gerardo & Rodriguez-Lopez, Jose Antonio, 2003. "Technology, trade, and wage inequality in Mexico before and after NAFTA," Journal of Development Economics, Elsevier, vol. 72(2), pages 543-565, December.
    8. Kym Anderson, 1996. "Social Policy Dimensions of Economic Integration: Environmental and Labour Standards," NBER Working Papers 5702, National Bureau of Economic Research, Inc.

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