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Effect of Trade on the Demand for Skilled and Unskilled Workers

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  • Chinkook Lee
  • Gerald Schluter

Abstract

We use an input-output model to examine the effects of trade and domestic consumption, technology and labor productivity on skilled and unskilled worker demand. We found that trade was not the major contributor to changes in demand for skilled and unskilled labor during 1972-92, counter to the continuing debate on the trade-widening wage gap linkage. We found that skill intensity, i.e. the ratio of high-skilled to low-skilled workers for exports compared with imports, exceeded one during 1972-92, but did not increase. We explore alternative definitions of skilled and unskilled, and find our results to be robust to these alternative definitions.

Suggested Citation

  • Chinkook Lee & Gerald Schluter, 1999. "Effect of Trade on the Demand for Skilled and Unskilled Workers," Economic Systems Research, Taylor & Francis Journals, vol. 11(1), pages 49-66.
  • Handle: RePEc:taf:ecsysr:v:11:y:1999:i:1:p:49-66
    DOI: 10.1080/09535319900000005
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    Citations

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    Cited by:

    1. Zeng, Xiangquan & Yuxue, Cui & Shisong, Qing & Yumei, Yang, 2011. "Real Exchange Rate, Foreign Trade and Employment: Evidence from China," IZA Discussion Papers 5931, Institute for the Study of Labor (IZA).
    2. Wilkinson, Timothy & Brouthers, Lance Eliot, 2006. "Trade promotion and SME export performance," International Business Review, Elsevier, vol. 15(3), pages 233-252, June.
    3. Pradhan, Jaya Prakash, 2005. "How Do Trade, Foreign Investment, and Technology Affect Employment Patterns in Organized Indian Manufacturing?," MPRA Paper 19010, University Library of Munich, Germany.
    4. Lee, Chinkook & Schluter, Gerald E., 2001. "Consolidation, Economies Of Scale, And The Heckshcer-Ohlin Theory Of Trade - An Empirical Analysis Of Us Meat Processing Industry," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14559, International Agricultural Trade Research Consortium.

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