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Trade and wages: choosing among alternative explanations

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  • Jagdish Bhagwati

Abstract

North-South trade competition cannot be an explanation for the adverse trend for U.S. unskilled wages. If wage competition in these industries from abroad pushed down wages, then prices of these goods should also have gone down, and they have not. Also VERs and anti-dumping measures have protected exactly the wage earners supposedly threatened.

Suggested Citation

  • Jagdish Bhagwati, 1995. "Trade and wages: choosing among alternative explanations," Economic Policy Review, Federal Reserve Bank of New York, issue Jan, pages 42-47.
    • Handle: RePEc:fip:fednep:y:1995:i:jan:p:42-47:n:v.1.no.1
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    References listed on IDEAS

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    1. Hakura, D. & Deardorff, A.V., 1993. "Trade and Wages: What Are the Questions?," Working Papers 341, Research Seminar in International Economics, University of Michigan.
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    Cited by:

    1. Paula Garda & Volker Ziemann, 2014. "Economic Policies and Microeconomic Stability: A Literature Review and Some Empirics," OECD Economics Department Working Papers 1115, OECD Publishing.
    2. repec:ere:journl:v:xl:y:2021:i:1:p:29-54 is not listed on IDEAS
    3. Esquivel, Gerardo & Rodriguez-Lopez, Jose Antonio, 2003. "Technology, trade, and wage inequality in Mexico before and after NAFTA," Journal of Development Economics, Elsevier, vol. 72(2), pages 543-565, December.
    4. Nathalie Chusseau & Michel Dumont & Joël Hellier, 2008. "Explaining Rising Inequality: Skill‐Biased Technical Change And North–South Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 409-457, July.
    5. Dumont, Michel & Rayp, Glenn & Willemé, Peter, 2012. "The bargaining position of low-skilled and high-skilled workers in a globalising world," Labour Economics, Elsevier, vol. 19(3), pages 312-319.
    6. Pflüger, Michael & Tabuchi, Takatoshi, 2019. "Comparative advantage, agglomeration economies and trade costs," Journal of Urban Economics, Elsevier, vol. 109(C), pages 1-13.
    7. Pflüger, Michael & Tabuchi, Takatoshi, 2014. "Services, Comparative Advantage and Agglomeration of Economic Activity: A Ricardo-Marshall Model," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100323, Verein für Socialpolitik / German Economic Association.
    8. Kym Anderson, 1997. "Social Policy Dimensions of Economic Integration: Environmental and Labor Standards," NBER Chapters, in: Regionalism versus Multilateral Trade Arrangements, pages 57-90, National Bureau of Economic Research, Inc.
    9. Feenstra, R.C. & Hanson, G.H., 1995. "Foreign Investment, Outsourcing and Relative Wages," Papers 95-14, California Davis - Institute of Governmental Affairs.
    10. Pflüger, Michael P. & Tabuchi, Takatoshi, 2016. "Comparative Advantage and Agglomeration of Economic Activity," IZA Discussion Papers 10273, IZA Network @ LISER.
    11. Dumont, Michel, 2004. "The Impact of International Trade with Newly Industrialised Countries on the Wages and Employment of Low-Skilled and High-Skilled Workers in the European Union," Thesis Commons bmxag, Center for Open Science.
    12. Derek Pyne, 1996. "Revealed Preference Tests of the Stolper-Samuelson Theorem," Working Papers 1997_01, York University, Department of Economics.
    13. Gaston, N., 2000. "Unions and the Decentralisation of Collective Bargaining in a Globalising World," ISER Discussion Paper 0495, Institute of Social and Economic Research, The University of Osaka.
    14. Salvatore D'Acunto, 2003. "Efficienza microeconomica versus efficienza "sistemica"? Note in margine al Libro Bianco del Ministero del Lavoro," Stato e mercato, Società editrice il Mulino, issue 2, pages 287-312.
    15. William Blankenau, 1999. "A Welfare Analysis of Policy Responses to the Skilled Wage Premium," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(4), pages 820-849, October.
    16. Zohal Hessami & Thushyanthan Baskaran, 2015. "Has Globalisation Affected Collective Bargaining? An Empirical Test, 1980–2009," The World Economy, Wiley Blackwell, vol. 38(12), pages 1880-1911, December.
    17. Brenda Murillo-Villanueva & Yolanda Carbajal Suárez & Leobardo de Jesús Almonte, 2021. "Desigualdad salarial en los subsectores manufactureros en México, 2007-2018," Ensayos Revista de Economía, Universidad Autónoma de Nuevo León, vol. 40(1), pages 29-54, May.

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