Trade and Rising Wage Inequality: What can we learn from a Decade of Computable General Equilibrium Analysis?
AbstractThis paper surveys computable general equilibrium (CGE) contributions to trade-wage debate. We conclude that this literature provides an avalanche of support for the view that trade has had only a minor influence on wage inequality through Heckscher-Ohlin channels. Moreover, some studies show that trade may be associated with declining wage inequality and/or reveal that North-North trade is responsible for a greater proportion of the increase in Northern wage inequality than North-South trade. The impact of trade-induced technical change, however, has received little attention in the CGE literature.
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Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 0606.
Length: 30 pages
Date of creation: Oct 2006
Date of revision: Oct 2006
computable general equilibrium modeling; trade and wages;
Find related papers by JEL classification:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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