Trade, Wage Gaps, and Specific Human Capital Accumulation

Ngo Van Long, Raymond Riezman, Antoine Soubeyran and Ngo Van Long
Authors registered in the RePEc Author Service: Ngo Van Long

No 911, CESifo Working Paper Series from CESifo

Abstract: We develop a new framework for the analysis of the impact of trade liberalization on the wage structure. Our model focuses on the decision of workers to accumulate firm-specific skills, by “on-the-job” training, knowing that this means their future wages will have to be negotiated, and that the outcome of negotiation will depend on the profitability prospect of firms operating in a new trading environment. We show that trade liberalization may reduce the welfare of a developing country because of its adverse effect on skill accumulation. We also explore the effects of trade liberalization on the wage gap between skilled and unskilled workers.

Keywords: wage gap; human capital; trade liberalization (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-dev and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Trade, Wage Gaps, and Specific Human Capital Accumulation* (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_911

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