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 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 InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 324.
Length: 43 pages
Date of creation: Jul 2001
Date of revision:
Publication status: published in: Journal of Economic Integration, 2004, 19 (1), 79-112
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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-2001-07-13 (All new papers)
- NEP-LAB-2001-07-13 (Labour Economics)
- NEP-TID-2001-07-13 (Technology & Industrial Dynamics)
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