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Trade, technology, and unemployment: the role of endogenous skill formation

Udo Kreickemeier ()

Canadian Journal of Economics, 2009, vol. 42, issue 2, 639-664

Abstract: world, where the two countries (`Europe' and `America') differ in their preferences towards wage inequality. Fair wage considerations compress wage differentials in both countries. European workers are more averse to wage inequality, and Europe is characterized by lower wage differentials and higher unemployment. Allowing for endogenous skill formation, the effects of a globalization shock, global technological change, and a change in the educational capital stock on skill premia and employment levels are derived. In contrast to a model with exogenous factor supplies, international wage and unemployment differentials are affected by global shocks.

JEL-codes: F11 F15 F16 (search for similar items in EconPapers)
Date: 2009
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Handle: RePEc:cje:issued:v:42:y:2009:i:2:p:639-664