Policy Implications of the Trade and Wages Debate

Alan Deardorff

Review of International Economics, 2000, vol. 8, issue 3, 478-496

Abstract: This paper examines the choice of policies to redistribute income in response to an increase in inequality caused by a rise in the differential wage paid to skilled labor compared with unskilled labor. The main issue is whether the appropriate policy response depends on whether the cause of the increased skill differential is ‘trade’—increased competition with low‐skilled workers abroad—or technological change. The analysis is conducted within the context of a two‐sector Heckscher–Ohlin trade model augmented to allow endogenous determination of the level of skill.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/1467-9396.00236

Related works:
Working Paper: Policy Implications of the Trade and Wages Debate (1999)
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: https://EconPapers.repec.org/RePEc:bla:reviec:v:8:y:2000:i:3:p:478-496

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().