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Trade, Technology and Labour Markets: Empirical Controversies in the Light of the Jones Model

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  • Pflüger, Michael P.

    ()
    (University of Würzburg)

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    Abstract

    The deterioration of the income and employment position of unskilled workers in the OECD area 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" or "globalisation" and technological progress. Several empirical strategies have been used to identify the importance of technological and globalisation shocks: 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 the Jones model as theoretical backbone to identify and settle the sources of disagreement, to consolidate recent results, to derive new insights and to provide an integrative assessment of the different empirical strategies.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 324.

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    Length: 43 pages
    Date of creation: Jul 2001
    Date of revision:
    Publication status: published in: Journal of Economic Integration, 2004, 19 (1), 79-112
    Handle: RePEc:iza:izadps:dp324

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    Related research

    Keywords: wage inequality; technology; North-South Trade; unemployment;

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