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Market Structure, International Trade and Relative Wages

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  • Joaquim Oliveira Martins

Abstract

This paper investigates the link between trade flows and relative wages on a cross-section of 22 sectors in 12 OECD countries. Industries are classified according to stylised facts about market structure (fragmentation, segmentation and degree of product differentiation). Next, the import penetration trends during the period 1970-90 are analysed, with special attention paid to the imports from Asian NICs. Finally, panel data estimates of a relative wage equation, encompassing both the characterisation of industries by type of market structure, as well as import penetration and export-intensity variables, are carried out. The results show that the impact of import penetration on relative wages tends to be negative in industries with low product differentiation, whereas the reverse result occurs in industries with high product differentiation and market segmentation ... Ce document propose une étude de la relation entre les flux des échanges et les salaires relatifs au moyen d'une coupe transversale de 22 secteurs dans 12 pays de l'OCDE. Les industries ont été classifiées selon des faits stylisés sur la structure des marchés (fragmentation, segmentation et degré de différentiation des produits). Ensuite, ont été analysés les tendances de la pénétration des importations sur la période 1970-90 ; une attention particulière a été donnée aux importations en provenance des NPI d'Asie. Finalement, une estimation sur des données de panel a été effectuée englobant à la fois la caractérisation des industries par type de structure de marché et des variables de pénétration des importations et intensité d'exportation. Les résultats montrent que l'impact de la pénétration des importations sur les salaires relatifs tend a être négatif dans les industries avec un faible degré de différentiation des produits alors que l'on obtient un résultat inverse pour les ...

Suggested Citation

  • Joaquim Oliveira Martins, 1993. "Market Structure, International Trade and Relative Wages," OECD Economics Department Working Papers 134, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:134-en
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    File URL: http://dx.doi.org/10.1787/778332675011
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    Cited by:

    1. Olivier Bontout & Sébastien Jean, 1998. "Sensibilité des salaires relatifs aux chocs exogènes de commerce international et de progrès technique: une évaluation d'équilibre général," Working Papers 1998-09, CEPII research center.
    2. Olivier Bontout & Sébastien Jean, 1998. "Wages and Unemployment: Trade-off Under Different Labour Market Paradigms," Working Papers 1998-13, CEPII research center.
    3. Bughin, Jacques & Vannini, Stefano, 1995. "Strategic direct investment under unionized oligopoly," International Journal of Industrial Organization, Elsevier, vol. 13(1), pages 127-145, March.

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