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Trade, Labour Force Growth and Wages

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  • Francois, Joseph F

Abstract

This paper explores the transmission of demographic pressure between open economies. The implications of labor force growth for wages, employment, and production patterns are formally examined. These issues are explored theoretically in a formal dual trade model incorporating features of both standard factor-based trade models and models of two-way trade based on product differentiation and returns to specialization. Sufficient conditions for positive trade linkages between labor force growth in one region and real wage erosion in another are derived. These conditions are then examined numerically in the context of projected non-OECD labor force growth. Copyright 1996 by Royal Economic Society.

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  • Francois, Joseph F, 1996. "Trade, Labour Force Growth and Wages," Economic Journal, Royal Economic Society, vol. 106(439), pages 1586-1609, November.
    • Handle: RePEc:ecj:econjl:v:106:y:1996:i:439:p:1586-1609
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    Cited by:

    1. De Loo, Ivo & Ziesemer, Thomas, 1998. "Determinants Of Sectoral Average Wage Growth Rates in a Specific Factors Model with International Capital Movements: The Case of Cobb-Douglas Production Functions," Research Memorandum 006, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Keshab Bhattarai, 2016. "Growth and Income Distributions in Four EU Economies," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(3), pages 263-277, August.
    3. De Loo, Ivo & Ziesemer, Thomas, 1999. "Determinants Of Sectoral Average Wage and Employment Growth Rates in a Specific Factors Model with Production Externalities and International Capital Movements," Research Memorandum 006, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    4. Keshab Raj BHATTARAI, 2009. "Dynamic Multi-Household General Economic Models for Policy Simulations: France, Germany, Spain and UK," EcoMod2009 21500014, EcoMod.

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