Searching for the Smoking Gun: Did Trade Hurt Unskilled Workers?
AbstractWe contribute to the trade-wage literature by conducting the first economy-wide analysis of the association between trade and wages in New Zealand. We find that increased imports since 1980 caused only a marginal increase in New Zealand wage inequality and, overall, increased trade (imports and exports) reduced wage inequality in this nation. As New Zealand imports of unskilled labour-intensive products relative to GDP are larger than those for other developed nations, we interpret these results as convincing evidence that trade is not responsible for rising wage inequality in developed nations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 0605.
Length: 31 pages
Date of creation: Sep 2006
Date of revision: Sep 2006
trade and wages; skill classification;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas Hertel & David Hummels & Maros Ivanic & Roman Keeney, 2004.
"How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?,"
NBER Working Papers
10477, National Bureau of Economic Research, Inc.
- Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
- Hertel, Thomas & David Hummels & Maros Ivanic & Roman Keeney, 2003. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," GTAP Working Papers 1324, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Neven, Damien J & Wyplosz, Charles, 1996.
"Relative Prices, Trade and Restructuring in European Industry,"
CEPR Discussion Papers
1451, C.E.P.R. Discussion Papers.
- Damien NEVEN. & Charles WYPLOSZ, 1996. "Relative Prices, Trade and Restructuring in European Industry," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 9615, Université de Lausanne, Faculté des HEC, DEEP.
- Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
- Haskel, Jonathan & Slaughter, Matthew J, 2001.
"Trade, Technology and U.K. Wage Inequality,"
Royal Economic Society, vol. 111(468), pages 163-87, January.
- Haskel, Jonathan & Slaughter, Matthew, 1999. "Trade, Technology and UK Wage Inequality," CEPR Discussion Papers 2091, C.E.P.R. Discussion Papers.
- Jonathan Haskel & Matthew J. Slaughter, 1999. "Trade, Technology and U.K. Wage Inequality," NBER Working Papers 6978, National Bureau of Economic Research, Inc.
- Tyers, R. & Yang, Y., 1996. "Trade with Asia and Skill Upgrading: Effects on Factor Markets in the Older Industrial Countries," CEPR Discussion Papers 346, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Lisandro Abrego & John Whalley, 2003. "Goods market responses to trade shocks and trade and wages decompositions," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 747-757, August.
- Dean Hyslop & Dave Mare & Jason Timmins, 2003. "Qualifications, Employment and the Value of Human Capital, 1986-2001," Treasury Working Paper Series 03/35, New Zealand Treasury.
- Robert Z. Lawrence & Carolyn L. Evans, 1996. "Trade and Wages: Insights from the Crystal Ball," NBER Working Papers 5633, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Steffen Lippert).
If references are entirely missing, you can add them using this form.