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A Production Theory Approach to the Imports and Wage Inequality Nexus

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  • Christis G. Tombazos

    ()
    (Department of Economics, Monash University, Clayton, Victoria 3800, Australia.)

Abstract

I employ a production theory approach to investigate the effect of fluctuations in the prices of imports of different origin on the wage differential between skilled and unskilled labor in the United States. Unlike competing methodologies, the employed framework of analysis accounts for the economy-wide effects of imports that derive from both domestic output substitution as well as downstream production. The results of this study suggest that the overall impact of imports, including those that originate in less developed economies, on the wage differential is negligible. Economy-wide dynamic processes of capital accumulation and technical change appear to play a far more important role in wage dispersion. Copyright 2003, Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 41 (2003)
Issue (Month): 1 (January)
Pages: 42-61

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Handle: RePEc:oup:ecinqu:v:41:y:2003:i:1:p:42-61

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Cited by:
  1. Chapda Nana, Guy & Larue, Bruno, 2012. "Imposing Curvature Conditions on Flexible Functional Forms to GNP Functions," Working Papers 123308, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
  2. Alexander Hijzen & Peter Wright, 2010. "Migration, trade and wages," Journal of Population Economics, Springer, vol. 23(4), pages 1189-1211, September.
  3. Elie Appelbaum, 1996. "Import Price Uncertainty and the Distribution of Income," Working Papers 1996_10, York University, Department of Economics.
  4. Tarjáni, Hajnalka, 2006. "A technológiai fejlődés és a kereskedelem hatása a szakképzettségi prémiumra
    [Analysing the impacts of technological development and trade on the skill premium in Hungary]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 226-234.
  5. Hajnalka Tarjani, 2005. "Estimating some labour market implications of skill biased technology change and imports in Hungary," IEHAS Discussion Papers 0508, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.

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