This paper examines Bertil Ohlin's analysis of trade policy and factor rewards in the context of the late nineteenth and early twentieth century United States. A leading question of the day was whether labor could benefit from protection. Ohlin suspected that labor could benefit from protection and his writings helped spawn the Stolper-Samuelson theorem, which was different from but consistent with Ohlin's approach. This paper seeks to find evidence on whether U.S. tariffs on imported labor-intensive manufactures helped enhance the income of labor at the expense of capital and land. The answer is unclear: vastly different conclusions arise from a calibrated general equilibrium Ohlin-style model and a factor content of trade calculation indirect evidence from lobbying and voting patterns over the tariff are also ambiguous.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
7641.
Length: Date of creation: Apr 2000 Date of revision: Handle: RePEc:nbr:nberwo:7641
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Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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