Market Interconnection and Wages
AbstractWe study the impacts of terms trade changes on absolute and the real wages of skilled and unskilled labor and their gaps for an economy specialized in export production. We show an interesting result where wage behavior as well as the skilled-unskilled wage gap depend on elasticity of import demand, unlike in 3x2 classical-neoclassical speci c-factor model of trade. Although, our analysis is in the spirit of Stolper-Samuelson theorem, given the structure of our model, factor intensity plays no role in our results as in the speci c-factor model.
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Bibliographic InfoPaper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0062.
Length: 10 pages
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skilled-unskilled labor; wage gap; terms of trade;
Other versions of this item:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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