EconPapers    
Economics at your fingertips  
 

Trade and Labour Markets

Carl Davidson and Steven Matusz
Additional contact information
Carl Davidson: Michigan State University

Chapter 14 in Palgrave Handbook of International Trade, 2013, pp 391-422 from Palgrave Macmillan

Abstract: Abstract What does increasing globalization mean for workers? This would appear to be a fairly straightforward question to which one might have a forthright answer. In fact, ‘the answer’ may just depend on one’s perspective. To the auto worker in Detroit, increasing integration of the world economy means long-term unemployment, loss of human capital, and perhaps lost dreams. For the new university graduate in India, rapid globalization may mean the creation of exciting new opportunities for employment in well-paid jobs. Deeper integration with the world economy provides a campaign issue politicians of all stripes: some railing against the damage caused by a tsunami of cheap foreign imports with others extolling the vast benefits of greater access to foreign markets. For a trade economist, expanded trade might mean changes in relative price and the associated Stolper-Samuelson effects, reducing real wages in labour scarce countries while increasing real wages in labour abundant countries. In contrast a labour economist might suggest that the factor trade implicit in a country’s net exports effectively augments (or diminishes) the country’s available supply of labour, thereby reducing (or increasing) the wage.

Keywords: International Trade; Minimum Wage; Real Wage; Trade Liberalization; Adjustment Cost (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-30531-1_14

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230305311

DOI: 10.1007/978-0-230-30531-1_14

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-04-01
Handle: RePEc:pal:palchp:978-0-230-30531-1_14