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    Trade liberalisation, technical change and relative wages

    Lattimore Ralph, G.
    Abstract
    In the trade and wages debate worldwide, one of the economic puzzles of the last 25 years has been the decline in real wage rates around the world. This issue is sometimes expressed in terms of a decline in unskilled wage rates relative to skilled rates, and sometimes as here in terms of real wage movements relative to product prices. Standard trade theory provides a framework to analyse this hypothesis by drawing the links between trade liberalisation and factor returns. Finally, this paper closes with some discussion of what might be done about the problem of real wage stagnation.
    Keywords
    wage distribution; trade liberalisation; foreign economic relations; employment relations; econometric model; international trade; econometric analysis
    Date
    2000-04
    Type
    Discussion Paper
    Collections
    • Commerce Division Discussion Paper series [116]
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