Globalization and Wage Stagnation: Historical and Theoretical Perspectives

Kenneth Weiher and Hamid Beladi

Asia-Pacific Journal of Accounting & Economics, 2011, vol. 18, issue 2, 201-211

Abstract: U.S. real-wages stagnation since 1973 in spite of rising labor productivity is an unprecedented phenomenon. This paper presents the history of the relationship between real wages and productivity and based upon long-run evidence rejects two possible explanations, measurement issues and skill-biased technical change. Instead it focuses on the coincidence of the development of productivity/wage wedge and the conversion of the U.S. economy to an open one in the 1970s. It suggests that in an open economy, technical improvements and foreign competition may collaborate to generate a fall in real earnings, where they would not in a closed economy.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2011.9720881 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:raaexx:v:18:y:2011:i:2:p:201-211

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2011.9720881

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().