Abstract
The recent widening of wage inequality has been attributed by some to skill-biased-technical-change and by others to trade liberalization. This paper examines the two explanations within a unified model and also presents a new modeling of skill-biased-technical-change, where skilled workers replace unskilled ones. As a result technology adoption is endogenous and does not occur in all countries. Hence, wages for both types of workers, trade patterns and also factor productivities in all countries are endogenously determined. The model sheds light on the relationship between technology and trade, on the reasons for global productivity differences and on the causes for the recent rise in wage inequality.
| Original language | English |
|---|---|
| Pages (from-to) | 79-103 |
| Number of pages | 25 |
| Journal | Journal of Economic Theory |
| Volume | 137 |
| Issue number | 1 |
| DOIs | |
| State | Published - Nov 2007 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Keywords
- International trade
- Productivity differences
- Skill-biased technical change
- Wage inequality
Fingerprint
Dive into the research topics of 'Wage inequality, technology, and trade'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver