IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v20y2006i1p69-83.html
   My bibliography  Save this article

Wages, Profits, and Rent-Sharing in an Open Economy

Author

Listed:
  • L. Josh Bivens

Abstract

This paper examines the link between international trade and labor market bargaining power. It reviews simple theories of rent-sharing in closed and open economies. Earlier studies on the issue of rent-sharing implicitly assume a closed economy. This assumption may provide some misleading results, especially for studying current developments in the US labor market. Empirical results suggest that the apparent decline in labor's bargaining power in US manufacturing may be attributable to growing international integration.

Suggested Citation

  • L. Josh Bivens, 2006. "Wages, Profits, and Rent-Sharing in an Open Economy," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(1), pages 69-83.
  • Handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:69-83
    DOI: 10.1080/02692170500362678
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170500362678
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, May.
    2. Gerald Epstein, 2000. "Threat Effects and the Impact of Capital Mobility on Wages and Public Finances: Developing a Research Agenda," Working Papers wp7, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-245, May.
    4. Blecker, Robert A., 1996. "The new economic integration: Structuralist models of North-South trade and investment liberalization," Structural Change and Economic Dynamics, Elsevier, vol. 7(3), pages 321-345, September.
    5. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
    6. William R. Cline, 1997. "Trade and Income Distribution," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 58.
    7. Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert A. Blecker, 2012. "Stolper–Samuelson Revisited: Trade And Distribution With Oligopolistic Profits," Metroeconomica, Wiley Blackwell, vol. 63(3), pages 569-598, July.

    More about this item

    Keywords

    Wages; rent-sharing; bargaining power; globalization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:69-83. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.