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The North-South HOS Model, inequality and globalization


  • Joël Hellier

    () (EQUIPPE, University of Lille 1, and LEMNA, University of Nantes)


The predictions from the traditional North-South HOS approach are at variance with the main characteristics of the Inequality-Globalization nexus. It is shown that by modifying this model and relaxing some of its most restrictive assumptions, it is possible to generate these characteristics. Four series of extensions are analysed: 1) divergent factor endowments between the North and the South and growing size of the South; 2) labour market rigidities resulting from a minimum wage or from the fair wage hypothesis; 3) the introduction of technological differences between countries, of technological transfers, of technological catching up and of technological biases; 4) the inserting of production segmentation and international outsourcing. Further possible extensions are also discussed. The resulting augmented North-South HOS approach provides suitable modelling of the Inequality-Globalization nexus.

Suggested Citation

  • Joël Hellier, 2012. "The North-South HOS Model, inequality and globalization," Working Papers 244, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2012-244

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    References listed on IDEAS

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    Cited by:

    1. Nathalie Chusseau & Joël Hellier, 2012. "Inequality in Emerging Countries," Working Papers hal-00993411, HAL.
    2. Nathalie Chusseau & Joel Hellier, 2014. "Globalization and social segmentation," Working Papers 339, ECINEQ, Society for the Study of Economic Inequality.

    More about this item


    Globalisation; H-O-S; Inequality; North-South model.;

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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