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On globalisation, trade and wages

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Author Info
Nahuis, R. (Tilburg University, Faculty of Economics and Business Administration)

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Abstract

Low skilled workers have been facing declining real wages during the 80s in the US, while high skilled workers gained in the same period. This decrease in the relative wage of the low skilled provoked a lively debate on the causes of the observed decline. A lot of academic authors have opposed to the popular view that trade with low wage countries caused the relative deterioration of low skilled workers. This paper addresses the central question, whether we can ignore the role for trade on the basis of existing literature. To answer this question, we first set forth basic trade theory. Next the theoretical basis for empirical validation is established, whereafter the empirical contributions of several authors are reviewed. Finally alternative explanations are assessed. On the basis of this survey we argue that the denial of a role for trade by a number of contributors to the debate is not convincing.

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Publisher Info
Paper provided by Tilburg University, Faculty of Economics and Business Administration in its series Research Memorandum with number 747.

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Date of creation: 1997
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Handle: RePEc:dgr:kubrem:1997747

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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    Other versions:
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    Other versions:
  17. Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  22. Paul Krugman, 1995. "Technology, Trade, and Factor Prices," NBER Working Papers 5355, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  23. Robert Z. Lawrence, 1994. "Trade, Multinationals, & Labor," NBER Working Papers 4836, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  24. Deardorff, Alan V. & Staiger, Robert W., 1988. "An interpretation of the factor content of trade," Journal of International Economics, Elsevier, vol. 24(1-2), pages 93-107, February. [Downloadable!] (restricted)
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  31. repec:fth:prinin:375 is not listed on IDEAS
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  1. Nahuis, R., 1998. "The dynamics of a general purpose technology in a research and assimilation model," Discussion Paper 119, Tilburg University, Center for Economic Research. [Downloadable!]
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