Skip to Main content Skip to Navigation
Journal articles

Wage inequality and skill supplies in a globalised world

Abstract : We investigate empirically, and explain theoretically, how the relative wages of skilled and unskilled workers vary with their relative supplies in open economies. Our results combine the insights of simple labour market and trade models. In countries that trade, relative wages respond inversely to variation in skill supplies, but the response decreases with the degree of openness to trade and is small in very open countries. To reconcile our results with standard estimates of the elasticity of substitution between skilled and unskilled workers, we allow also for the influence of directed technical change and income elasticity of demand for skill-intensive goods.
Document type :
Journal articles
Complete list of metadata
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Wednesday, March 11, 2020 - 5:38:46 PM
Last modification on : Wednesday, November 3, 2021 - 5:49:43 AM

Links full text




Lorenzo Rotunno, Adrian Wood. Wage inequality and skill supplies in a globalised world. Journal of Comparative Economics, Elsevier, 2020, 48 (3), pp.529-547. ⟨10.1016/j.jce.2019.12.006⟩. ⟨hal-02505834⟩



Record views