International trade, technical change and wage inequality in the U.K. economy

Sabine Engelmann

No 201208, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper examines the joint impact of international trade and technical change on U.K. wages across different skill groups. International trade is measured as changes in product prices and technical change as total factor productivity (TFP) growth. We take account of a multi-sector and multi-factor of production economy and use mandated wage methodology to offer a close theoretical-empirical relationship. We use data of the EU KLEMS database and analyse the impact of both, product price changes and TFP changes of 11 U.K. manufacturing sectors on factor rewards of high-, medium- and low-skilled workers. Results show that real wages of skill groups are driven by the sector bias of price change and TFP growth of selected sectors of production. Furthermore, for each year 1970-2005 we estimate the share of the three different skill groups on added value which indicate structural change in the U.K. economy. Empirical results show a structural change in the U.K. economy by the declined share of low-skilled workers and the increased share of medium-skilled and high-skilled workers over the years." (Author's abstract, IAB-Doku) ((en))

Keywords: Großbritannien; Außenhandel; berufliche Qualifikation; Beschäftigungseffekte; Einkommenseffekte; Hochqualifizierte; Lohnhöhe; Lohnunterschied; mittlere Qualifikation; Niedrigqualifizierte; Preisentwicklung; Produktivitätsentwicklung; Qualifikationsniveau; Qualifikationsstruktur; Reallohn; Arbeitskräftenachfrage; technischer Wandel; verarbeitendes Gewerbe; 1970-2005 (search for similar items in EconPapers)
JEL-codes: F11 F16 J31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2012
New Economics Papers: this item is included in nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published in/as: Empirica, Vol. 41, No. 2 (2014), S. 323-246, doi:10.1007/s10663-013-9209-z

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201208

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