Globalization, wage volatility, and the welfare of workers

D. Traça*

*Autor corresponent d’aquest treball

Producció científica: Article en revista indexadaArticleAvaluat per experts

5 Cites (Scopus)

Resum

This paper analyzes the effects of trade liberalization on the level and volatility of factor returns, in a model with identical technologies across industries and industry-specific uncertainty. The results show an increase in the return to capital and, under certain conditions, a decline in the real wages and welfare of workers, along with an expansion of wage dispersion and volatility. Unlike the Solper-Samuelson mechanism, our results do not depend on the factor intensity of imports and exports and are borne out by all patterns of trade, including among industrialized countries, suggesting that the traditional analysis has missed some important linkages between trade and wages.

Idioma originalAnglès
Pàgines (de-a)237-249
Nombre de pàgines13
RevistaReview of International Economics
Volum13
Número2
DOIs
Estat de la publicacióPublicada - de maig 2005
Publicat externament

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