Trade Induced Structural Change and the Skill Premium PDF Download

Author: Javier Cravino
Publisher:
ISBN:
Category : International trade
Languages : en
Pages : 70

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Book Description
We study how international trade affects manufacturing employment and the relative wage of unskilled workers when goods and services are traded with different intensities. Manufacturing trade reduces manufacturing prices worldwide, which reduces manufacturing employment if manufactures and services are complements. We document that manufacturing production is unskilled-labor intensive, so that these changes increase the skill-premium. We incorporate this mechanism in a quantitative trade model and show that trade has had a negative impact on manufacturing employment and the relative wage of unskilled workers. The impact on the skill premium was larger in developing countries where manufacturing is particularly unskilled-labor intensive.

Author: Weishi Gu
Publisher:
ISBN:
Category :
Languages : en
Pages : 62

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Book Description
We study how the skill distribution for an economy responds to changes in the skill premium induced by trade integration. Using administrative data for Denmark (1993- 2012) and Portugal (1993-2011), we conduct a two-step analysis. In the first step we predict the skill premium changes which are triggered by exogenous trade shocks. In the second step we estimate the impact of such changes on the skill distribution. The main results for Denmark show that both the average and the standard deviation of skills increase as a result of trade integration. For Portugal we find instead that the impact of trade mediated by skill premium changes is negligible and not statistically significant. We provide a theoretical intuition to rationalize both sets of results.

Author: Sylvain Dessy
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
Gains from trade come a certain degree of specialisation among trade partners. Specialisation in the case of an agriculture-based developing country might be feared to imply a higher reliance than ever on low skill labour. Trade might thus be seen as a step away from the much awaited structural transformation of the economy, which can only come with increases in agricultural productivity. In this paper, we suggest that it needs not be the case. We show that trade openness can in fact trigger the structural transformation of such an agrarian society. It can induce a higher reliance on human capital accumulation and produce the necessary productivity gains for an economy to pick up. Our dynamic general equilibrium model provides a clear illustration of the mechanics behind such structural transformation.

Author: Richard Nahuis
Publisher:
ISBN:
Category : Wages
Languages : en
Pages : 50

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Author: Seyed Ali Madanizadeh
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This paper is concerned about addressing a question that has become critical in international trade, during the past three decades: "What factors explain the worldwide increase in skill premiums following international trade integration and increasingly globalized economies"? I propose a new theory to address this question through the lens of firm organization and labor specialization. In this model, I show how trade liberalization will result in reallocation of high skilled workers within an industry towards more productive firms and exporters. Specifically, reducing trade costs induces new exporters to choose a higher degree of labor specialization within high-skilled or low-skilled workers, to reduce their marginal costs, and to evolve into more skill-intensive entities. I further demonstrate how these internal organizational changes directly affect aggregate skill intensity and the skill premium in a general equilibrium setting. Lastly, I calibrate this model to Mexican data to quantify the rise in the skill premium in the period of 1985-1993.

Author: Terry L. Roe
Publisher: Springer Science & Business Media
ISBN: 0387773584
Category : Business & Economics
Languages : en
Pages : 333

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Book Description
The primary objective of this book is to advance the state of the art in specifying and ?tting to data structural multi-sector dynamic macroeconomic models, and empirically implementing them. The fundamental construct upon which we build is the Ramsey model. A most attractive feature of this model is the insights it provides into the dynamics of an economy in tr- sition to long-run equilibrium. With some exceptions, Ramsey models are highly aggregated – typically single sector models. However, interest often lies in understanding the forces of e- nomic growth across multiple sectors of an economy and on how policy impacts likely play out over time. Such analyses call for moredisaggregatedmodelsthatcanbe?ttocountryorregional data.Thisbookshowshowto:(i)extendthebasicmodeltom- tiple sectors, (ii) how to adapt the basic model to account for policy instruments, and (iii) ?t the model to data, and obtain equilibrium values both forward and backward in time from the data points to which the model is initially ?t.

Author: Kwang Suk Kim
Publisher: BRILL
ISBN: 1684172195
Category : History
Languages : en
Pages : 224

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Book Description
This study provides a comprehensive overview of Korea’s macroeconomic growth and structural change since World War II, and traces some of the roots of development to the colonial period. The authors explore in detail colonial development, changing national income patterns, relative price shifts, sources of aggregate growth, and sources of sectoral structural change, comparing them with other countries.

Author: Sugata Marjit
Publisher: Cambridge University Press
ISBN: 1009115804
Category : Business & Economics
Languages : en
Pages : 161

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Book Description
Virtual economic transactions have radically transformed the way we think about trade and markets in closed and open economies. Continuous decline in costs of information and communications and setting up of phenomenally large number of virtual platforms have brought in 'Time' as an essential element in the discourse on international trade. This work delves deep into the issue of how Time enters as a major catalyst of international trade and virtual transactions. This changes the way we look at ideas of comparative advantage, factor mobility, growth, income distribution, and allied concepts. A key result is that greater physical distance might encourage trade contrary to what we are accustomed to accept.

Author: Douglas A. Irwin
Publisher: Princeton University Press
ISBN: 0691203369
Category : Business & Economics
Languages : en
Pages : 366

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Book Description
An updated look at global trade and why it remains as controversial as ever Free trade is always under attack, more than ever in recent years. The imposition of numerous U.S. tariffs in 2018, and the retaliation those tariffs have drawn, has thrust trade issues to the top of the policy agenda. Critics contend that free trade brings economic pain, including plant closings and worker layoffs, and that trade agreements serve corporate interests, undercut domestic environmental regulations, and erode national sovereignty. Why are global trade and agreements such as the Trans-Pacific Partnership so controversial? Does free trade deserve its bad reputation? In Free Trade under Fire, Douglas Irwin sweeps aside the misconceptions that run rampant in the debate over trade and gives readers a clear understanding of the issues involved. In its fifth edition, the book has been updated to address the sweeping new policy developments under the Trump administration and the latest research on the impact of trade.

Author: Lionel Fontagné
Publisher: Oxford University Press
ISBN: 019877916X
Category : Business & Economics
Languages : en
Pages : 383

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Book Description
An economic analysis of de-industrialization that considers the ongoing transformation of the industrial economies and the consequences for economic policy.