Trade, Technology, and Wages: General Equilibrium Mechanics
AbstractThis paper highlights analytical reasons why we believe trade and technology are linked to wagemovements in general, and how we should organize our examination of the recent episode of wage andemployment erosion in the OECD countries. We start with a graphic tour through the mechanics ofgeneral equilibrium theory on trade and wages. This provides a set of implied relationships betweenwages and factor intensity trends that, together, provide a casual test of the consistency of positedrelationships with actual trends. Numeric analysis and a review of the general equilibrium empiricalliterature follow the theoretical overview.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-058/2.
Date of creation: 04 Jun 1998
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Other versions of this item:
- Francois, Joseph F & Nelson, Douglas, 1998. "Trade, Technology, and Wages: General Equilibrium Mechanics," Economic Journal, Royal Economic Society, vol. 108(450), pages 1483-99, September.
- Francois, Joseph & Nelson, Doug R, 1998. "Trade, Technology and Wages: General Equilibrium Mechanics," CEPR Discussion Papers 1919, C.E.P.R. Discussion Papers.
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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