Trade, Technology and U.K. Wage Inequality

Jonathan Haskel () and Matthew J Slaughter

Economic Journal, 2001, vol. 111, issue 468, 163-87

Abstract: This paper examines the impact of international trade and technical change on changes in the UK skill premium. We first measure trade as changes in product prices and technical change as TFP growth. Then we relate price and TFP changes to a set of underlying forces. Among our results are (a) changes in prices, not TFP, were the major force behind the rise in inequality in the 1980s; (b) changes in OECD prices and UK tariffs significantly raised 1980s skill premia through their effects on prices, and that industry concentration significantly raised 1980s skill premia through its effect on TFP.

Date: 2001
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Related works:
Working Paper: Trade, Technology and UK Wage Inequality (1999)
Working Paper: Trade, Technology and U.K. Wage Inequality (1999)
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