International Trade and American Wages in General Equilibrium, 1967 - 1995
AbstractIn the last quarter century, wage inequality has increased dramatically in the United States. At the same time, the US has become more integrated into the world economy prices of final goods have changed, the capital stock has more than doubled has become steadily more educated. This paper estimates a flexible, empirical equilibrium model of wage determination in an attempt to sort out the connections between these trends. Aggregate data on prices and quantities of imports, outputs, and factor supplies are constructed from disaggregate sources. The econometric analysis concludes that wage inequality has been partly driven by changes in relative factor supplies and relative final goods prices. In contrast, imports have played a negligible direct role.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6609.
Date of creation: Jun 1998
Date of revision:
Publication status: published as James Harrigan. "International Trade and American Wages in General Equilibrium, 1967-1995," in Robert C. Feenstra, editor, "The Impact of International Trade on Wages" University of Chicago Press (2000)
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Other versions of this item:
- James Harrigan, 2000. "International Trade and American Wages in General Equilibrium, 1967-1995," NBER Chapters, in: The Impact of International Trade on Wages, pages 171-196 National Bureau of Economic Research, Inc.
- James Harrigan, 1998. "International trade and American wages in general equilibrium, 1967-1995," Staff Reports 46, Federal Reserve Bank of New York.
- F1 - International Economics - - Trade
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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