International Trade and Polarization in the Labor Market

被引:0
作者
Das, Satya P. [1 ]
机构
[1] Indian Stat Inst Delhi Ctr, Planning Unit, New Delhi 110016, India
来源
ECONOMICS-THE OPEN ACCESS OPEN-ASSESSMENT E-JOURNAL | 2012年 / 6卷
关键词
Polarization in labor markets; hollowing out; wage inequality; skill biased technical change; terms of trade; off-shoring; INCOME-DISTRIBUTION; WAGES; INEQUALITY; TASKS;
D O I
10.5018/economics-ejournal.ja.2012-6
中图分类号
F [经济];
学科分类号
02 ;
摘要
The paper builds an argument that international trade can be an explanation behind polarization of employment in the labor market observed in developed countries such as U.K. and U.S. It considers a small open economy, having production sectors which use three types of labor: high-skill, middle-skill and low-skill. The economy faces an increase in the relative price of the high-skill intensive sector. Using decision rules for choosing high-skill, middle-skill and low-skill education, it is shown that such a terms-of-trade shock can lead to polarization: shrinkage of middle-skill jobs, combined with higher shares of high-skill as well as low-skill workers in the total workforce. The effects of off-shoring on wages and job composition are also studied. Off-shoring of low-skill and high-skill tasks, not middle-skill tasks, is shown to contribute towards polarization in job composition.
引用
收藏
页数:45
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