Wage Inequality and Skill Supplies in a Globalised World

Lorenzo Rotunno and Adrian Wood

No 1634, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We investigate empirically how the relative wages of skilled and unskilled workers vary with their relative supplies in open economies. The investigation is based on a Heckscher-Ohlin model that is more general than the canonical version and related to recent advances in trade theory. Our results bridge the gap between trade economists and labour economists in views on the role of national labour markets in wage determination when countries trade. As labour economists believe, relative wages are sensitive to variation in skill supplies in open economies. As trade economists believe, however, this sensitivity decreases with openness to trade.

Keywords: Heckscher-Ohlin; trade and wages; wage inequality; labour markets (search for similar items in EconPapers)
JEL-codes: F11 F16 J23 J31 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2016-10
New Economics Papers: this item is included in nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Wage inequality and skill supplies in a globalised world (2020)
Working Paper: Wage inequality and skill supplies in a globalised world (2020)
Working Paper: Wage Inequality and Skill Supplies in a Globalised World (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1634

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