International trade and polarization in the labor market
The paper builds an argument that international trade can be an explanation behind polarization of employment in the labor market observed in developed countries such as UK and US It considers a small open economy, having production sectors which use three types of labor: high-skill, middle-skill and low-skill. The economy faces an increase in the relative price of the high-skill intensive sector. Using decision rules for choosing high-skill, middleskill and low-skill education, it is shown that such a terms-of- trade shock can lead to polarization: shrinkage of middle-skill jobs, combined with higher shares of high-skill as well as low-skill workers in the total workforce. The effects of off-shoring on wages and job composition are also studied. Off-shoring of low-skill and high-skill tasks, not middle-skill tasks, is shown to contribute towards polarization in job composition.
Volume (Year): 6 (2012)
Issue (Month): ()
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:tpr:qjecon:v:118:y:2003:i:4:p:1279-1333 is not listed on IDEAS
- Arnaud Costinot & Jonathan Vogel, 2010.
"Matching and Inequality in the World Economy,"
Journal of Political Economy,
University of Chicago Press, vol. 118(4), pages 747-786, 08.
- Arnaud Costinot & Jonathan Vogel, 2009. "Matching and Inequality in the World Economy," NBER Working Papers 14672, National Bureau of Economic Research, Inc.
- Jonathan Vogel & Arnaud Costinot, 2008. "Matching and Inequality in the World Economy," 2008 Meeting Papers 879, Society for Economic Dynamics.
- Robert Feenstra, 2003.
"Integration Of Trade And Disintegration Of Production In The Global Economy,"
986, University of California, Davis, Department of Economics.
- Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert C. Feenstra, . "Integration Of Trade And Disintegration Of Production In The Global Economy," Department of Economics 98-06, California Davis - Department of Economics.
- Jaewon Jung & Jean Mercenier, 2010.
"Routinization-Biased Technical Change, Globalization and Labor Market Polarization: Does Theory Fit the Facts?,"
- Jaewon Jung & Jean Mercenier, 2010. "Routinization-Biased Technical Change, Globalization and Labor Market Polarization: Does Theory Fit the Facts?," Working Papers 13/2010, University of Verona, Department of Economics.
- Jaewon Jung & Jean Mercenier, 2011. "Routinization-Biased Technical Change, Globalization and Labor Market Polarization: Does Theory Fit the Facts?," TEPP Working Paper 2011-10, TEPP.
- Jung J. & Mercenier J., 2010. "Routinization-Biased Technical Change, Globalization and Labor Market Polarization: Does Theory Fit the Facts?," Working Papers ERMES 1006, ERMES, University Paris 2.
- David H. Autor & Frank Levy & Richard J. Murnane, 2001.
"The Skill Content of Recent Technological Change: An Empirical Exploration,"
NBER Working Papers
8337, National Bureau of Economic Research, Inc.
- David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
- Galor, Oded & Zeira, Joseph, 1988.
"Income Distribution and Macroeconomics,"
51644, University Library of Munich, Germany, revised 01 Sep 1989.
- Ngo Van Long & Koji Shimomura, 2002.
"Relative Wealth, Status Seeking, and Catching Up,"
CIRANO Working Papers
- Emily Blanchard & Gerald Willmann, 2013.
"Trade, Education, and the Shrinking Middle Class,"
CESifo Working Paper Series
4141, CESifo Group Munich.
- Maarten Goos & Alan Manning, 2003.
"Lousy and Lovely Jobs: the Rising Polarization of Work in Britain,"
CEP Discussion Papers
dp0604, Centre for Economic Performance, LSE.
- Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
- Bradford J Jensen & Andrew B Bernard, 1994.
"Exporters, Skill Upgrading And The Wage Gap,"
94-13, Center for Economic Studies, U.S. Census Bureau.
- Yeaple, Stephen Ross, 2005. "A simple model of firm heterogeneity, international trade, and wages," Journal of International Economics, Elsevier, vol. 65(1), pages 1-20, January.
- Galor, Oded, 2000. "Income distribution and the process of development," European Economic Review, Elsevier, vol. 44(4-6), pages 706-712, May.
- Das, Satya P., 2006. "Trade, skill acquisition and distribution," Journal of Development Economics, Elsevier, vol. 81(1), pages 118-141, October.
- Gene M. Grossman & Esteban Rossi-Hansberg, 2008.
"Trading Tasks: A Simple Theory of Offshoring,"
American Economic Review,
American Economic Association, vol. 98(5), pages 1978-97, December.
- Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
- Pham, Thi Kim Cuong, 2005. "Economic growth and status-seeking through personal wealth," European Journal of Political Economy, Elsevier, vol. 21(2), pages 407-427, June.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:20126. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.