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The Interplay between International Trade and Technological Change and the wage inequality in the OECD Countries

Author

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  • Nikolina Stojanovska
  • Ludo Cuyvers

Abstract

We estimate the impact of international trade and of trade-induced technological change on the wage inequality in the OECD countries, by estimating a two-stage mandated-wage regression. From our estimation we find no evidence on the Stolper-Samuelson effect of trade with the developing and newly industrialized countries. On the other hand, the evidenced technological change from technological competition did not have a strong effect on the increase of the wage differential between the different types of labour in the analyzed sample of OECD countries, which would have indicated that the bias of the technological change towards the skilled-intensive sectors is determined by trade in innovation-intensive goods.

Suggested Citation

  • Nikolina Stojanovska & Ludo Cuyvers, 2010. "The Interplay between International Trade and Technological Change and the wage inequality in the OECD Countries," FIW Working Paper series 043, FIW.
    • Handle: RePEc:wsr:wpaper:y:2010:i:043
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    Citations

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    Cited by:

    1. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Can pro-growth policies lift all boats?: An analysis based on household disposable income," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 227-268.
    2. Sabine Engelmann, 2014. "International trade, technological change and wage inequality in the UK economy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(2), pages 223-246, May.
    3. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Structural reforms and income distribution," OECD Economic Policy Papers 13, OECD Publishing.

    More about this item

    Keywords

    price competition; technological competition; wage inequality;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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