Journal article
Trade, Wage Gaps, and Specific Human Capital Accumulation
Review of international economics, Vol.15(1), pp.75-92
02/2007
DOI: 10.1111/j.1467-9396.2007.00674.x
Abstract
We develop a new framework for the analysis of the impact of trade liberalization on the wage structure and on welfare. Our model focuses on the decision of workers to accumulate firm-specific skills, by “on-the-job” training, knowing that this means their future wages will have to be negotiated, and that the outcome of negotiation will depend on the profitability prospect of firms operating in a new trading environment. We show that trade liberalization may reduce the welfare of a developing country because of its adverse effect on skill accumulation. We also explore the effects of trade liberalization on the wage gap between skilled and unskilled workers.
Details
- Title: Subtitle
- Trade, Wage Gaps, and Specific Human Capital Accumulation
- Creators
- Ngo Van Long - McGill UniversityRaymond Riezman - University of IowaAntoine Soubeyran - Institut de Neurobiologie de la Méditerranée
- Resource Type
- Journal article
- Publication Details
- Review of international economics, Vol.15(1), pp.75-92
- DOI
- 10.1111/j.1467-9396.2007.00674.x
- ISSN
- 0965-7576
- eISSN
- 1467-9396
- Publisher
- Blackwell Publishing Ltd
- Number of pages
- 18
- Language
- English
- Date published
- 02/2007
- Academic Unit
- Economics
- Record Identifier
- 9984963223602771
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