Human capital, unemployment, and relative wages in a global economy

Donald R. Davis () and Trevor A. Reeve

No 659, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a global economy. It builds on the models of Davis (1998a, b) of trade between a flexible-wage America and a rigid-wage Europe. To this it adds a model of human capital accumulation based on Findlay and Kierzkowski (1983). A variety of comparative statics are examined, including changes in educational capital and population, entry of new countries to the trading world, technical change, and a productivity slowdown. We derive the consequences for the skilled-to unskilled wage gap, unemployment, and skill composition.

Keywords: International trade; Human capital; Unemployment; Wages (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-lab
Date: 2000
View list of references View citations in EconPapers

Downloads: (external link)
http://www.federalreserve.gov/pubs/ifdp/2000/659/default.htm (text/html)
http://www.federalreserve.gov/pubs/ifdp/2000/659/ifdp659.pdf (application/pdf)

Related works:
Working Paper: Human Capital, Unemployment, and Relative Wages in a Global Economy (1997)
Working Paper: Human Capital, Unemployment and Relative Wages in a Global Economy (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:fip:fedgif:659

Ordering information: This working paper can be ordered from
http://www.federalreserve.gov/pubs/ifdp/order.htm

Access Statistics for this paper

More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)
Contact information at EDIRC.
Series data maintained by Diane Rosenberger ().