Trade, Technology, and Wages: General Equilibrium Mechanics

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Trade, Technology, and Wages: General Equilibrium Mechanics

Author Info

Joseph F. Francois () (Erasmus University Rotterdam and CEPR)
Douglas Nelson () (Tulane University and CREDIT)

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Abstract

This paper highlights analytical reasons why we believe trade and technology are linked to wage movements in general, and how we should organize our examination of the recent episode of wage and employment erosion in the OECD countries. We start with a graphic tour through the mechanics of general equilibrium theory on trade and wages. This provides a set of implied relationships between wages and factor intensity trends that, together, provide a casual test of the consistency of posited relationships with actual trends. Numeric analysis and a review of the general equilibrium empirical literature follow the theoretical overview.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-058/2.

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Date of creation: 04 Jun 1998
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Handle: RePEc:dgr:uvatin:19980058

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Other versions of this item:

Article
- 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. [Downloadable!] (restricted)
Paper
- Francois, Joseph & Nelson, Doug R, 1998. "Trade, Technology and Wages: General Equilibrium Mechanics," CEPR Discussion Papers 1919, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)

Cited by:
(explanations, 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.)

Neary, J Peter, 2001. "Competition, Trade and Wages," CEPR Discussion Papers 2732, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- J. Peter Neary, 2000. "Competition, Trade and Wages," Working Papers 200020, School Of Economics, University College Dublin. [Downloadable!]
Yang, Y. & Tyers, R., 1999. "The Asian Recession and Northern Labour Markets," ANUCBE School of Economics Working Papers 1999-372, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
Other versions:
- Yang, Y. & Tyers, R., 1999. "The Asian Recession and Northern Labour Markets," Papers 372, Australian National University - Department of Economics.
- Rod Tyers & Yongzheng Yang, 2004. "The Asian Recession and Northern Labour Markets," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 58-75, 03. [Downloadable!] (restricted)
Giuseppe Celi, 2004. "Quality Differentiation, Vertical Disintegration and The Labour Market Effects of Intra-Industry Trade," CELPE Discussion Papers 86, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
Lisandro Abrego & John Whalley, 2002. "Decomposing Wage Inequality Change Using General Equilibrium Models," University of Western Ontario, RBC Financial Group Economic Policy Research Institute Working Papers 20022, University of Western Ontario, RBC Financial Group Economic Policy Research Institute. [Downloadable!]
Other versions:
- Lisandro Abrego & John Whalley, 2002. "Decomposing Wage Inequality Change Using General Equilibrium Models," NBER Working Papers 9184, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute. [Downloadable!]
Niven Winchester & David Greenaway & Geoffrey V. Reed, 2006. "Skill Classification and the Effects of Trade on Wage Inequality," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 287-306, July. [Downloadable!] (restricted)
Willem Molle, 2002. "Globalization, Regionalism and Labour Markets: Should We Recast the Foundations of the EU Regime in Matters of Regional (Rural and Urban) Development?," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 161-172, April. [Downloadable!] (restricted)
Thierfelder, Karen & Robinson, Sherman, 2002. "Trade and tradability," TMD discussion papers 93, International Food Policy Research Institute (IFPRI). [Downloadable!]
Lisandro Abrego & John Whalley, 1999. "The Choice of Structural Model in Trade-Wages Decompositions," NBER Working Papers 7312, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Lisandro Abrego & John Whalley, 1999. "The Choice of Structural Model in Trade-Wages Decompositions," CSGR Working papers series 34/99, Centre for the Study of Globalisation and Regionalisation (CSGR), University of Warwick.
- Abrego, Lisandro & Whalley, John, 2000. "The Choice of Structural Model in Trade-Wages Decompositions," Review of International Economics, Blackwell Publishing, vol. 8(3), pages 462-77, August. [Downloadable!] (restricted)

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