Pflüger, Michael () (Institut für Allgemeine Wirtschaftsforschung, Freiburg)
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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
324.
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
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