English, Article, Journal or magazine article edition: Wage Differential, Trade, Productivity Growth and Education Chang, Hsaio-chuan

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Bookmark: http://trove.nla.gov.au/version/42070
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Wage Differential, Trade, Productivity Growth and Education
Author
  • Chang, Hsaio-chuan
Physical Description
  • preprint
Notes
  • There is a large literature on the link between wage differential, international trade and productivity growth. The theoretical and empirical research is mainly based on the Heckscher-Ohlin-Samuelson framework and on the cases of a large country. More comprehensive theoretical models are needed to guide further empirical research. This paper contributes to the debate by providing a dynamic intertemporal general equilibrium (DIGE) model incorporating endogenous skill formation. The result tends to support the argument that trade has a responsibility for wage differential. A cut in government education investment tends to raise wage differential. Productivity growth at best causes wage differential in the short run. From a theoretical perspective it is unclear whether productivity growth raises wage differential in the long run once the accumulation of skills is endogenized.
  • RePEc:pas:papers:2000-01
Language
  • English
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