Foreign competition and wage inequality
|Title:||Foreign competition and wage inequality||Authors:||Neary, J. Peter||Permanent link:||http://hdl.handle.net/10197/1270||Date:||29-Nov-2001||Abstract:||I argue that increased foreign competition can affect technical choice and skill differentials even when actual imports do not rise significantly. I present a model of General Oligopolistic Equilibrium ("GOLE") in which a reduction in import barriers (whethe technological or policy-imposed) encourages more strategic investment by incumbent firms. The predictions accord with many of the stylised facts: higher skill premia; higher ratios of skilled to unskilled workers employed in all sectors and throughout the economy; little change in import volumes or prices; and rapid technological progress with rather little change in total factor productivity. (Presidential address to the International Economics and Finance Society, presented at the AEA/ASSA meetings, New Orleans, January 2001.)||Funding Details:||The Economic and Social Research Council (ESRC)||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Keywords:||General Oligopolistic Equilibrium ("GOLE");Skill premia;Skill-biased technical progress;Strategic investment;Trade and wages||Subject LCSH:||Competition, International
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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