Competition, trade and wages
|Title:||Competition, trade and wages||Authors:||Neary, J. Peter||Permanent link:||http://hdl.handle.net/10197/1277||Date:||5-Jun-2001||Abstract:||I briefly review the empirical evidence in the trade and wages debate, which overwhelmingly rejects the Heckscher-Ohlin explanation for recent increases in OECD skill premia. I then argue that the same evidence is also difficult to reconcile in general equilibrium with the view that exogenous skill-biased technological progress is the sole culprit. Finally, I present a model of oligopolistic competition which is more consistent with the evidence. Removing quantitative import constraints (a metaphor for increased foreign competition) encourages both home and foreign firms to invest more aggressively, raising their demand for skilled labour even at unchanged relative wages.||Funding Details:||The Economic and Social Research Council (ESRC)||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP00/20||Keywords:||OECD wage inequality; Oligopolistic competition; Skill-biased technological progress; Skill premia; Trade and wages||Subject LCSH:||Wage differentials--OECD countries
|Other versions:||http://www.ucd.ie/economics/research/papers/2000/WP00.20.pdf||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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