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Trade, Wages and Revolving Door Ideas

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Author Info
Edward E. Leamer
Abstract

Recent discussions of the effects of globalization and technological change on U.S. wages have suffered from inappropriate or missing references to the basic international trade theorems: The Factor Price Equalization Theorem, the Stolper-Samuelson Theorem and the Samuelson Duality Theorem. Until the theory is better understood, and until the theory and the estimates are sensibly linked, the jury should remain out. This paper gives examples of the misuse of the international micro theory linking technological change and globalization to the internal labor market. This international micro theory serves as a foundation for a reexamination of the NBER Trade and Immigration Data Base that describes output, employment and investment in 450 4-digit SIC U.S. manufacturing sectors beginning in 1970. Estimates of the impact of technological change on income inequality are shown to vary widely depending on the form of the model and the choice of data subsets, but uniformly the estimates suggest that technological change reduced income inequality not increased it. But the data separation of workers into 'production' and 'non-production' workers has little association with skill levels, and these data probably cannot be used to study income inequality.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4716.

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Date of creation: Apr 1994
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Handle: RePEc:nbr:nberwo:4716

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  1. Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Luisa Lambertini, 2001. "Technological Change and Public Financing of Education," Boston College Working Papers in Economics 579, Boston College Department of Economics. [Downloadable!]
  2. Kramarz, Francis, 2003. "Wages and International Trade," CEPR Discussion Papers 3936, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. John T. Addison & Douglas A. Fox & Christopher J. Ruhm, 1996. "Trade Sensitivity, Technology, and Labor Displacement," NBER Working Papers 5621, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Lindbeck, Assar & Snower, Dennis J., 1999. "Multi-Task Learning and the Reorganization of Work. From Tayloristic to Holistic Organization," IZA Discussion Papers 39, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. De Loo,Ivo & Ziesemer,Thomas, 1998. "Determinants Of Sectoral Average Wage Growth Rates in a Specific Factors Model with International Capital Movements: The Case of Cobb-Douglas Production Functions," Research Memoranda 006, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  6. Jeffrey R. Bernstein & David E. Weinstein, 1998. "Do Endowments Predict the Location of Production? Evidence from National and International Data," NBER Working Papers 6815, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Nahuis, R., 1997. "On globalisation, trade and wages," Research Memorandum 747, Tilburg University, Faculty of Economics and Business Administration. [Downloadable!]
  8. Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003. "Trade Reforms and Wage Inequality in Colombia," CEPR Discussion Papers 4023, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  9. Paul Krugman, 1995. "Technology, Trade, and Factor Prices," NBER Working Papers 5355, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Jeff Borland, 2000. "Economic Explanations of Earnings Distribution Trends in the International Literature and Application to New Zealand," Treasury Working Paper Series 00/16, New Zealand Treasury. [Downloadable!]
  11. Donald R. Davis, 1996. "Does European Unemployment Prop up American Wages?," NBER Working Papers 5620, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Gordon H. Hanson & Ann Harrison, 1995. "Trade, Technology, and Wage Inequality," NBER Working Papers 5110, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. De Loo,Ivo & Ziesemer,Thomas, 1999. "Determinants Of Sectoral Average Wage and Employment Growth Rates in a Specific Factors Model with Production Externalities and International Capital Movements," Research Memoranda 006, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  14. Gustavo Gonzaga & Beatriz Muriel & Cristina Terra, 2005. "Abertura Comercial, Desigualdade Salarial E Sindicalização," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 073, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  15. Catherine J. MORRISON & Donald SIEGEL, 1997. "Automation Or Openness?: Technology And Trade Impacts On Costs And Labor Composition In The Food System," Department of Resource Economics Regional Research Project 965, University of Massachusetts. [Downloadable!]
  16. James Harrigan & Rita Balaban, 1999. "U.S. Wages in General Equilibrium: The Effects of Prices, Technology, and Factor Supplies, 1963-1991," NBER Working Papers 6981, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. Robert E. Baldwin, 1995. "The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages," NBER Working Papers 5037, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," NBER Working Papers 6166, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  19. Donald R. Davis, 1996. "Technology, Unemployment, and Relative Wages in a Global Economy," NBER Working Papers 5636, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  20. Olivier Cortes & Sebastien Jean & Jean Pisani-Ferry, 1996. "Trade with Emerging Countries and the Labour Market : The French Case," Working Papers 1996-04, CEPII research center. [Downloadable!]
  21. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Effect of Technology and Trade on Wage Differentials Between Nonproduction and Production Workers in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 1998098e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  22. Lindbeck, Assar & Snower, Dennis J., 1997. "Restructuring Production and Work," Seminar Papers 602, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  23. Thoenig, Mathias & Verdier, Thierry, 2002. "A Theory of Defensive Skill-based Innovation and Globalization," CEPR Discussion Papers 3416, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  24. Frederick Gale, 1997. "The Rural-Urban Gap In Manufacturing Productivity And Wages: Effects Of Industry Mix And Region," Working Papers 97-6, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  25. Dijk,Machiel,van, 1998. "Industry Life Cycles in Dutch Manufacturing," Research Memoranda 010, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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