Trade, Wages and Revolving Door Ideas
Recent discussions of the effects of globalization and technological change on U.S. wages have suffered from inappropriate or missing references to the basic international trade theorems: The Factor Price Equalization Theorem, the Stolper-Samuelson Theorem and the Samuelson Duality Theorem. Until the theory is better understood, and until the theory and the estimates are sensibly linked, the jury should remain out. This paper gives examples of the misuse of the international micro theory linking technological change and globalization to the internal labor market. This international micro theory serves as a foundation for a reexamination of the NBER Trade and Immigration Data Base that describes output, employment and investment in 450 4-digit SIC U.S. manufacturing sectors beginning in 1970. Estimates of the impact of technological change on income inequality are shown to vary widely depending on the form of the model and the choice of data subsets, but uniformly the estimates suggest that technological change reduced income inequality not increased it. But the data separation of workers into 'production' and 'non-production' workers has little association with skill levels, and these data probably cannot be used to study income inequality.
|Date of creation:||Apr 1994|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
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.:
- Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4716. 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: ()
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.