Trade, Technology and Labour Markets: Empirical Controversies in the Light of the Jones Model
AbstractThe deterioration of the income and employment position of unskilled workers in the OECD since the 1980s is a well-documented fact. The debate about the causes of this development is dominated by two competing hypotheses, "North-South Trade" ("globalisation") and technological progress. Several empirical methodologies have been used to identify and quantify the importance of these two explanations: factor content analyses, consistency checks, regression analyses and numerical methods. However, no consensus has been achieved so far and there is considerable methodological controversy. This paper uses Jones's (1965) exposition of the standard trade model as analytical backbone to identify and settle the sources of disagreement, to provide a synthesis of existing results, to derive new insights, and to provide a comprehensive assessment of the aforementioned empirical methodologies.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 328.
Length: 32 p.
Date of creation: 2003
Date of revision:
North-South Trade; Technology; Wage Inequality; Unemployment;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-24 (All new papers)
- NEP-DEV-2003-02-24 (Development)
- NEP-LAB-2003-02-24 (Labour Economics)
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