Trade, Technology and Wages: General Equilibrium Mechanics

CEPR Discussion Paper Series Number 1919

Posted: 25 Sep 1998

See all articles by Joseph F. Francois

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Douglas Nelson

Tulane University - Department of Economics

Date Written: July 1998

Abstract

This paper highlights analytical reasons why we believe trade and technology are linked to wage movements in general, and how we should organize our examination of the recent episode of wage and employment erosion in the OECD countries. We start with a graphic tour through the mechanics of general equilibrium theory on trade and wages. This provides a set of implied relationships between wages and factor intensity trends that, together, provide a casual test of the consistency of posited relationships with actual trends. Numeric analysis and a review of the general equilibrium empirical literature follow the theoretical overview.

JEL Classification: F11, F12, J31

Suggested Citation

Francois, Joseph F and Nelson, Douglas R., Trade, Technology and Wages: General Equilibrium Mechanics (July 1998). CEPR Discussion Paper Series Number 1919, Available at SSRN: https://ssrn.com/abstract=128323

Joseph F Francois (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

Oppolzergasse 6
A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Douglas R. Nelson

Tulane University - Department of Economics ( email )

New Orleans, LA 70118
United States

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