Technology, Trade, and Increasing Inequality: Does the Cause Matter for the Cure?
AbstractThis paper addresses an issue that has received a great deal of attention in recent years, both from international trade economists and from labor economists: What has caused the relative wage of skilled labor compared to unskilled labor in the United States to increase through the 1980s and 1990s? Prime candidates for causing this change have been "trade" - the increased competition of U.S. workers with unskilled workers abroad - and "technology" - new products and processes that may have increased the productivity of skilled workers or skill-intensive industries relative to their unskilled counterparts. The paper reviews what has happened to relative wages and the explanations that have been suggested. A brief look at the empirical evidence from this literature is suggestive, but hardly conclusive. But the paper then asks whether the answer to this question really matters.
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Bibliographic InfoPaper provided by Research Seminar in International Economics, University of Michigan in its series Working Papers with number 428.
Length: 38 pages
Date of creation: 1998
Date of revision:
TRADE ; WAGES;
Other versions of this item:
- Deardorff, Alan V, 1998. "Technology, Trade, and Increasing Inequality: Does the Cause Matter for the Cure?," Journal of International Economic Law, Oxford University Press, vol. 1(3), pages 353-76, September.
- Deardorff, A.V., 1998. "Technology, Trade, and Increasing Inequality: Does the Cause Matter for the Cure," Papers 98-15, Michigan - Center for Research on Economic & Social Theory.
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
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- Michel Dumont, 2006. "Foreign outsourcing, labour demand and the choice of functional form," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 255-273, November.
- Elena Meschi & Erol Taymaz & Marco Vivarelli, 2009.
"Trade, Technology and Skills: Evidence from Turkish Microdata,"
Jena Economic Research Papers
2009-097, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Meschi, Elena & Taymaz, Erol & Vivarelli, Marco, 2011. "Trade, technology and skills: Evidence from Turkish microdata," Labour Economics, Elsevier, vol. 18(S1), pages S60-S70.
- Elena Meschi & Erol Taymaz & Marco Vivarelli, 2010. "Trade, Technology And Skills: Evidence From Turkish Microdata," DISES - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1062, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Haskel, Jonathan, 2000.
"The Trade and Labour Approaches to Wage Inequality,"
CEPR Discussion Papers
2476, C.E.P.R. Discussion Papers.
- Jonathan E. Haskel, 1999. "The Trade and Labour Approaches to Wage Inequality," Working Papers 405, Queen Mary, University of London, School of Economics and Finance.
- Anuradha Roy & Ricardo Leiva, . "Testing of a Structures Covariance Matrix for Three-Level Repeated Measures Data," Working Papers 0037, College of Business, University of Texas at San Antonio.
- Naoko Shinkai, 2000. "Does the Stopler-Samuelson Theorem Explain the Movement in Wages? The Linkage Between Trade and Wages in Latin American Countries," Research Department Publications 4237, Inter-American Development Bank, Research Department.
- Naoko Shinkai, 2000. "¿Explica el teorema Stopler-Samuelson el desplazamiento de los salarios? El vínculo entre el comercio internacional y los salarios en países latinoamericanos," Research Department Publications 4238, Inter-American Development Bank, Research Department.
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