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Trade, Technology and Labor Markets: General Equilibrium Perspectives


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  • Tyers, Rod

    (The Australian National University)

  • Duncan, Ron

    (The Australian National University)


This paper summarizes the state of the debate on the effects of "globalization" and spontaneous technical change on wages and, in this context, describes the results from a recent study of the links between trade, technical change and labor market behavior. These new results show that comparatively minor generalization of the standard Heckscher-Ohlin-Samuelson model of trading countries substantially moderates the Stolper-Samuelson factor reward changes stemming from trade refonn. in part for this reason, results from a global general equilibrium analysis suggest that the direct effects of increased openness are a comparatively minor explanator of the observed shifts in labor demand and that skilled-labor-using technical change would appear most important. Of course, part of that technical change may itself be in response to international competition. Any protectionist response against developing countries, driven by concerns about wage inequality or unemployment, is shown to be counteroductive.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 14 (1999)
Issue (Month): ()
Pages: 226-264

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Handle: RePEc:ris:integr:0104

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Keywords: trade; wages; technology;

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Cited by:
  1. Patrick Laplagne & Peter Marshall & Susan Stone, 2001. "The role of technology in determining skilled employment: an economywide approach," Labor and Demography 0108001, EconWPA.
  2. Rod Tyers, 2013. "International Effects of China's Rise and Transition: Neoclassical and Keynesian Perspectives," CAMA Working Papers 2013-44, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  3. Rod Tyers & Ian Bain & Jahnvi Vedi, 2006. "The global implications of freer skilled migration," ANU Working Papers in Economics and Econometrics 2006-468, Australian National University, College of Business and Economics, School of Economics.
  4. Jordan Shan, 1999. "Immigration and Unemployment: New evidence from Australia and New Zealand," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(2), pages 253-260.


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