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Trade, Jobs, and Wages

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Author Info

  • Paul Krugman
  • Robert Lawrence

Abstract

There is a broad consensus among US opinion leaders that our economic problem is largely one of failures of international competition -- that trade deficits have eroded our manufacturing base, that inability to sell on world markets has been a major drag on economic growth, and that imports from low-wage countries have caused a widening of income inequality. This paper summarizes recent evidence on these issues, and shows that while there may be a grain of truth to each complaint, in each case the effect is quantitatively minor. The arithmetic of 'competitiveness' just doesn't work.

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File URL: http://www.nber.org/papers/w4478.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4478.

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Date of creation: Sep 1993
Date of revision:
Handle: RePEc:nbr:nberwo:4478

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