RELATIVE WAGE PATTERNS AMONG SKILLED AND UNSKILLED WORKERS AND INTERNATIONAL TRADE: EVIDENCE FROM CANADA
|
|
- Stephen Blankenship
- 5 years ago
- Views:
Transcription
1 ASAC Toronto, Ontario, Ramdas Chandra John Molson School of Business Concordia University RELATIVE WAGE PATTERNS AMONG SKILLED AND UNSKILLED WORKERS AND INTERNATIONAL TRADE: EVIDENCE FROM CANADA International business scholars have become increasingly concerned with the impact of trade expansion on domestic wages, particularly those of skilled labor in developed nations. This study reports exploratory findings on the wage patterns among skilled and unskilled workers in Canada between 1998 and 22. Introduction One of the hottest topics in globalization these days is the impact of international trade and business on wages in the domestic market. Particularly, the recent trend of outsourcing has raised fears among many countries that expansion of trade will result in a reduction of returns to skilled labor, hitherto the competitive advantage of the developed countries. In Canada, a recent report by Price Waterhouse Canada (24) (PWC) raised similarly alarmist concerns. The study claims a loss of about 7, jobs that could potentially be lost in Canada, thanks to outsourcing. Last year, U.S. Senate Democratic leader Tom Daschle used the term Alice in Wonderland economics, blaming 2.9 million jobs lost on trade and outsourcing. What seems to worry a lot of current economists as well as politicians is the quality of jobs supposedly lost to international trade and investment. Through the 197s and 198s, the jobs that disappeared from North America were mostly manufacturing jobs, which were replaced by higher paying service jobs. However, the current wave of internationalization, particularly the offshoring trend involves highvalue addition jobs, including research and development. The impact of the emergence of these jobs on domestic wages, particularly to skilled labor is therefore an area of concern in countries like the United States, France and Canada. France, for instance, announced a plan in 24 to counter the outsourcing trend, offering monetary incentives to French companies that kept jobs in France rather than outsourcing them to lower-labor cost markets. The current study focuses on a specific, narrow aspect of this debate. We seek descriptive evidence on the last five-year relative wage patterns of skilled and unskilled workers in Canada, and examine whether trade, both imports and exports, appear to have any effect on relative wages. We argue that if high skilled labor would suffer from lower returns as a result of greater internationalization, then industries which are comprised of high levels of imports and exports should see downward pressure on wage levels, or even a decline of relative wage levels, particularly among skilled workers. We also seek to determine whether these relative wage patterns are affected by the knowledge intensity of the industry. We stress that the study is 21
2 exploratory in nature, and seeks to find patterns in Canadian wages, rather than offering and testing explanatory hypotheses. Background Ricardo s theory of comparative advantage has for long been one of the most dominant paradigms in international business. It has formed the intellectual basis of the arguments for free trade, and for forming responses to the anti-globalization protesters. Ricardian equilibrium analysis does not lead to any long run loss in jobs as a result of free trade, but rather focuses on the gains in net national product among free traders, that, again in the long run, leaves all countries with higher real wages. Of course, in the short run, it might lead to a job loss in the higher wage countries, but these losses are offset in the long run by consumer gains as well as expanded national output, thanks to a trade-induced rise in demand by consumers in all countries. Although condensed and simplified, the argument above is used by advocates of globalization to suggest that trade eventually benefits the economy and raises income levels. Opponents on the other hand argue that increased trade comes with an increase from foreign competition, particularly from developing countries, and hence depresses developed country wages, and even worsens income distribution in these countries. An enormous amount of literature has informed this debate for several decades now. Needless to say, the empirical evidence is rather mixed, ranging from minimal effects of trade on income to significant effects. We do not review the vast literature here, but merely offer a small sample of studies that offer different positions on this debate. For instance, Murphy and Welch (1991) find that tradable sectors of the economy face higher downward pressure on wages of unskilled workers. Similarly, Katz and Murphy (1992) find that relative demand for, and hence wages of unskilled labor falls as relative size of trade in the economy increases. Finally, Berman, Bound and Griliches (1994) also find that trade induces a shift in demand for skilled labor. Borjas, Freeman and Katz (1992) focus on the specific direction of downward pressure on wages, summarizing that imports tend to depress wages, while exports tend to raise wage levels in a country. The empirical results begin to look significantly more mixed when specific impacts of trade on skilled and unskilled labor is considered. For instance, Robbins (1994) and Robbins and Zveglich (199) both find persistent decreases in wage differentials among skilled and unskilled workers associated with increased international trade. On the other hand, Wood (1997) and Feenstra and Hanson (1997) find exactly the opposite result! Increased trade and liberalization widened income inequalities among skilled and unskilled workers. Several factors can be proposed to explain such contradictory findings, including the empirical context of the studies, the structure of the economy, the specific structural characteristics of the importing and exporting sectors of the economy and the cost of capital and capital intensity of the trading sectors. Most of these have not been however empirically tested. 22
3 From Canada s standpoint, in his doctoral thesis, Zakhilwal (2) uses data from the Survey of Labor and Income Dynamics to find some evidence of the existence of a premium for skilled workers in Canada. One of the explanatory factors he offers for this premium is the international trade intensity. The data used however pertains to three years in the early 199s, and precedes the current wave of internationalization that is perceived to have a more dramatic effect on skilled wages. The current attention on the impact of trade on wages of course stems from the growing trade deficit of the United States, and the ongoing phenomenon of outsourcing, both of which are seen to defy conventional economic logic that comparative advantage should result in overall gains to both trading countries. This has spawned a growing stream of research investigating whether in fact there might be a case for negative impact of trade on income levels in a country. In an influential article, Samuelson (24) provides a Ricardian equilibrium analysis that allows for a productivity gain or innovation by a trading partner in a product in which the domestic country enjoys a comparative advantage. The Samuelson model, which appears to be a more deterministic, special-case version of Johnson (19), basically relaxes one of the important assumptions of traditional Ricardian analysis, namely that relative productivity and relative skill endowments are constant. Under these circumstances, Johnson (19) shows that the effect of trade is likely to be ambiguous, depending on exactly how much the consumption effects were offset by the production effects on growth, and hence the resulting terms of trade. However, Samuelson s model more sharply assumes that these productivity gains in foreign markets are exactly large enough to equalize the cost ratios between the trading countries, thereby evaporating any benefits from trade in the first place. The model therefore concludes that under such a scenario, new market clearing real wages for the developed markets will be lowered by free trade. The implications of the Samuelson model are fairly critical, especially for developed countries like Canada. If empirically valid, then we should expect to find further downward pressure on wages, especially of skilled workers in developed countries, as trade expands. As the supply of skilled labor in developing countries goes up, the relative returns to skilled labor in the developed countries should be lower. This would be particularly true in the most recent decade, which has seen the emergence of large markets like India, China and Brazil developing significant competitive advantage particularly in knowledge intensive sectors of the economy. The development of a significantly large skilled labor force in these markets should, according to the Samuelson model result in downward pressure on returns to skilled and even unskilled labor in the developed markets. We should emphasize that this does not necessarily mean lower absolute wages, but could simply translate to lower growth in real wages than before. The rest of this paper now examines Canadian wages of skilled and unskilled labor to identify trends and factors that appear to be consistent with the Samuelson model s predictions. 23
4 Data and Concepts The data is drawn from the 1998, 2 and 22 (latest available) Canadian Labor Force Survey files. The monthly survey involves around, Canadian households and provides current, monthly estimates of total employment estimates by industry, occupation, hours worked, wage, union status, job permanency and workplace size along with demographic data. We classify the sample as follows. Skilled labor includes all categories of workers who have post-secondary education or higher, while the remaining categories are grouped as unskilled. Following standard approaches, younger workers are those aged 3 and under, while older workers are aged between 36 and 6. The data files also provide the gender of the workers surveyed, allowing us to further break the data down by wages of male versus female workers. The Labor Force Survey also provides the industry of employment, based on three digit NAICS (North American Industrial Classification System). These NAICS codes allow us to classify industries into high-knowledge intensive, medium-knowledge intensive and low-knowledge intensive industries. The classification of specific industries follows a well-established procedure by Lee and Has (1996) and fine-tuned by Baldwin and Johnson (1999). Essentially, R&D and human indicators, such as R&D to sales ratio, proportion of R&D employees to total employment, ration of skilled workers to total employment, ration of employed scientists and engineers to total employment are used to determine the knowledge intensity of each sector of the economy. To conserve space, we do not reproduce the results of the classification here, but the interested reader is referred to Baldwin and Johnson (1999) or Morisette, Ostrovsky and Picot (24) for a complete and detailed listing of industries by NAICS and knowledge intensity. We simply use their classification system in our study to classify industries into one of the three categories of knowledge intensity. Finally, we use two measures of international trade reliance to classify each of the industries in our sample. One is the relative export reliance of the industry, the other the import reliance of the industry, in order to examine differences in wage patterns between export oriented and import oriented industries. Both these measures are simply a ratio of the exports or imports to the total output. The industries where this ratio is higher than the median are considered high export or import-reliant industries. Results and Discussion Figure 1a below shows overall data on average skilled and unskilled worker wages between 1998 and
5 Figure 1a Skilled versus unskilled wages 3 Skilled wages- 14.4% growth 2 1 unskilled wages- 1.9% growth As the figure shows, skilled wages have grown faster than unskilled wages, and the relative ratio of skilled to unskilled wages has also grown over this five year period, increasing from 1.4 to a little less than 1.. Comparably, the ratio in the U.S. has increased to about 1.8 over the same time period. Therefore, relatively speaking, income inequality in Canada is still lower than that in the U.S. Figure 1b below shows similar trends for incomes in males versus females.
6 Figure 1b Wages of male versus female workers 2 Males- 12.2% growth 1 1 Females- 13.% While the ratio of male to female wages has remained fairly constant at around 1.3 in Canada, female wages grew insignificantly faster than male wages over the time period in our sample. While we don t show it in this paper, a breakdown of the above numbers by age and gender lead to very similar conclusions. The growth in skilled female wages is almost identical to that in skilled male wages, while unskilled female wages have grown about 1.% faster than unskilled female wages. In general, we find that demographic differences in the growth of wages over this time period are insignificant; however, skilled wages have grown slightly faster than unskilled wages over this time period, which is quite consistent with data from other O.E.C.D. countries like the U.S. and those in Europe The next step is to determine whether there exist any differences based on the industry knowledge intensity. Figure 2a below shows trends in wages broken down by knowledge intensity of the industry. 26
7 Figure 2a Wages in High-, Medium- and Low-Knowledge Intensive Industries 2 1 High Medium Low As seen from the figure, there is very little change in the relative wages across all three types of industries. In fact, there remains a consistent 22% premium in the wages in high knowledge intensive industries over this time period. The growth in wages in these sectors is also relatively similar, with wages in high knowledge intensive industries growing by 13.6%, compared to 12.6% in low knowledge intensive industries. Figures 2b and 2c below show the relative wages of skilled and unskilled labor, across the three types of industries separately. While the skilled wages in both high- and low-knowledge intensive industries have increased at approximately the same rate of about 1%, those in medium-knowledge intensive industries have increased only at 1%. Interestingly, several of the service industries commonly associated with outsourcing are classified in the medium-intensive knowledge industries, lending some credence to the perception that wages in these sectors face downward pressure. 27
8 Figure 2b Skilled wages across knowledge intensity Figure 2c Unskilled wages across knowledge intensity The premium for skilled labor in high-knowledge intensive industries versus low knowledge intensive industries is a little less than that for unskilled labor, suggesting downward pressure on unskilled labor in low knowledge intensive industries. Finally, we present wage data separated by high versus low export reliance in figure 3a, followed by similar data for high versus low import reliance in figure 3b. Figure 3a Skilled versus unskilled wages in high and low export reliance industries Skilled, hi exports Skilled, lo exports Unskilled, hi exports Unskilled, lo exports
9 Figure 3b Skilled versus unskilled wages in low and high import reliance industries Skilled, hi imports Skilled, lo imports Unskilled, hi imports Unskilled, lo imports The data permit some interesting observations, partially in support of traditional comparative advantage theory, but also raising some concerns about domestic wages in the presence of foreign competition. 1. Consistent with what one might expect from a Ricardian analysis, both skilled and unskilled wages in export-oriented sectors is higher than that in less export-oriented industries. Therefore, there is an export premium as previous literature has posited and demonstrated (e.g. Cline, 1997). What is perhaps more interesting is that the premium for skilled labor is almost % higher in high export-reliant industries compared to low export-reliant industries, up from 8% in Put another way, the ratio of skilled wages to unskilled wages rose from 1.3 to 1.4 in export-oriented industries, while declining insignificantly from 1.37 to 1.3 in less export-oriented industries. Therefore, outward trade is beneficial to income growth in Canada, while contributing to greater income inequality between skilled and unskilled labor. 2. The variance in wages in export-reliant industries is higher than that in import-reliant industries. As seen from figure 2b, import reliance seems to have very little impact on explaining wage differentials, both within and across skilled and unskilled labor. There is an insignificant difference in skilled wages across both high and low import-reliant industries; the same holds for unskilled wages as well. More importantly, this is quite consistent over the time period in our sample, suggesting that there is little downward pressure, if any on wages in import-oriented industries. The finding that this is true of skilled wages particularly is of importance in refuting the claim that high-skilled labor from cheaper trading partners might put downward pressure on high skill wages in import-reliant industries in Canada. 3. A cautionary note however is sounded when one compares skilled and unskilled wages in low import-reliant industries to low export-reliant industries. Wages in low import-reliant industries are consistently higher than those in low export-reliant industries, lending some credence to the claim that import competition might indirectly put downward pressure on wages of both skilled and unskilled labor in the domestic market. However, this is a caution that requires further investigation. 29
10 Conclusions and looking ahead Our preliminary exploratory forays into labor data from suggest that traditional Ricardian analysis still appears to hold well for the Canadian market. The data suggests that export-reliant industries likely to enjoy a wage premium both for unskilled and skilled labor. However, there is no such premium (or discount) for either skilled or unskilled labor in importreliant industries. We find some evidence of an increase in overall income inequality between skilled and unskilled labor. Export orientation, and hence trade seems to play a major role in this increasing inequality. Export oriented industries have a significantly higher and growing premium between skilled and unskilled labor, which will perhaps eventually contribute to an even greater overall income inequality, given the overall reliance of the Canadian economy on exports. We do not however find any evidence to support protectionist arguments against inward trade. Import orientation does not seem to affect either skilled or unskilled wages; or the ratio of these wages over time. Therefore, there does not appear to be any preliminary justification for the fear that growth in skilled labor endowments in foreign markets might lead to downward pressure on Canadian wages through imports. We again caution that we have simply presented descriptive evidence on the pattern of skilled and unskilled wages in Canada over A more comprehensive understanding of these patterns will emerge with fine-grained multivariate analysis, which is what we will undertake in the next phase of this research. We hope to have these results in the very near future, and suggest that our understanding of the impact of trade on income and income distribution will be enhanced from such analysis. References Baldwin, J.R and J. Johnson, The Defining Characteristics of Entrants in Science-Based Industries. Catalogue No XIE, Statistics Canada Berman, Bound, and Grilliches, Changes In The Demand For Skilled Labor Within US Manufacturing: Evidence From The Annual Survey Of Manufactures, Quarterly Journal of Economics, May 1994, Borjas, G., R. Freeman and L. Katz, On the Labour Market Effects of Immigration and Trade, in Borjas, G. and R. Freeman (eds.), Immigration and the Work Force, Chicago: The University of Chicago Press Cline, William, Trade and Income Distribution. Institute for International Economics, Feenstra, R. and G Hanson, Foreign Direct Investment and Relative Wages: Evidence from Mexico s Maquiladoras, Journal of International Economics, Vol , Johnson, H., Economic Expansion and International Trade. Manchester School of Economic and Social Studies 23, 19,
11 Katz, L. and K. Murphy, Changes in Relative Wages, : Supply and Demand Factors, Quarterly Journal of Economics 17, 1992, Lee, F and H. Has, A Quantitative Assessment of High-Knowledge Industries versus Low- Knowledge Intensive Industries, in P. Howitt (ed.), The Implications of Knowledge-Based Growth for Micro-Economic Policies. Industry Canada Series, Vol University of Calgary Press. Morissette, R, Y. Ostrovsky and G. Picot, Relative Wage Patterns among the Highly Educated in a Knowledge-based Economy, Research Paper No. 11F19MIE, Analytical Studies Branch, Statistics Canada, 24. Murphy, K. and F. Welch, The Role of International Trade in Wage Differentials, in Koster, M. (ed.), Workers and Their Wages: Changing Patterns in the United States, 1991, AEI Press Price Waterhouse Coopers Canada. A Fine Balance: The Impact Of Offshore IT Services On Canada's IT Landscape, 24. Robbins, D, Malaysian Wage Structure and its Causes, Harvard Institute for International Development, Robbins, D and T. Zveglich, Skill bias in Recent Taiwanese Growth, Harvard Institute for International Development Samuelson, P., Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists supporting Globalization, Journal of Economic Perspectives, 18(3), 24, Wood, A, Openness and Wage Inequalities in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom, World Bank Research Observer, 1997, Zakhilwal, O, The impact of International Trade on Wages of Canadians, Research Paper No. 11F19MPE No. 16, Family and Labor Studies, Statistics Canada. 211
Inequality in Labor Market Outcomes: Contrasting the 1980s and Earlier Decades
Inequality in Labor Market Outcomes: Contrasting the 1980s and Earlier Decades Chinhui Juhn and Kevin M. Murphy* The views expressed in this article are those of the authors and do not necessarily reflect
More informationARTNeT Trade Economists Conference Trade in the Asian century - delivering on the promise of economic prosperity rd September 2014
ASIA-PACIFIC RESEARCH AND TRAINING NETWORK ON TRADE ARTNeT CONFERENCE ARTNeT Trade Economists Conference Trade in the Asian century - delivering on the promise of economic prosperity 22-23 rd September
More informationThe Demography of the Labor Force in Emerging Markets
The Demography of the Labor Force in Emerging Markets David Lam I. Introduction This paper discusses how demographic changes are affecting the labor force in emerging markets. As will be shown below, the
More informationThe wage gap between the public and the private sector among. Canadian-born and immigrant workers
The wage gap between the public and the private sector among Canadian-born and immigrant workers By Kaiyu Zheng (Student No. 8169992) Major paper presented to the Department of Economics of the University
More informationPersistent Inequality
Canadian Centre for Policy Alternatives Ontario December 2018 Persistent Inequality Ontario s Colour-coded Labour Market Sheila Block and Grace-Edward Galabuzi www.policyalternatives.ca RESEARCH ANALYSIS
More informationExecutive summary. Strong records of economic growth in the Asia-Pacific region have benefited many workers.
Executive summary Strong records of economic growth in the Asia-Pacific region have benefited many workers. In many ways, these are exciting times for Asia and the Pacific as a region. Dynamic growth and
More information1. Free trade refers to a situation where a government does not attempt to influence through quotas
Chapter 06 International Trade Theory True / False Questions 1. Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from
More informationTrends in inequality worldwide (Gini coefficients)
Section 2 Impact of trade on income inequality As described above, it has been theoretically and empirically proved that the progress of globalization as represented by trade brings benefits in the form
More informationChapter 4. Preview. Introduction. Resources, Comparative Advantage, and Income Distribution
Chapter 4 Resources, Comparative Advantage, and Income Distribution Slides prepared by Thomas Bishop Copyright 2009 Pearson Addison-Wesley. All rights reserved. Preview Production possibilities Relationship
More information2016 NCBFAA SCHOLARSHIP WAGE INEQUALITY AND TRADE APPLICANT: JORDAN ABISCH. In what has become an undying debate since its emergence in the 1980 s,
In what has become an undying debate since its emergence in the 1980 s, academic professors, economists, unions, and businesses have argued about the cause of the wage gap between skilled and unskilled
More informationChapter 5. Resources and Trade: The Heckscher-Ohlin Model
Chapter 5 Resources and Trade: The Heckscher-Ohlin Model Preview Production possibilities Changing the mix of inputs Relationships among factor prices and goods prices, and resources and output Trade in
More informationChapter 5. Resources and Trade: The Heckscher-Ohlin
Chapter 5 Resources and Trade: The Heckscher-Ohlin Model Chapter Organization 1. Assumption 2. Domestic Market (1) Factor prices and goods prices (2) Factor levels and output levels 3. Trade in the Heckscher-Ohlin
More informationHow does international trade affect household welfare?
BEYZA URAL MARCHAND University of Alberta, Canada How does international trade affect household welfare? Households can benefit from international trade as it lowers the prices of consumer goods Keywords:
More informationVolume 35, Issue 1. An examination of the effect of immigration on income inequality: A Gini index approach
Volume 35, Issue 1 An examination of the effect of immigration on income inequality: A Gini index approach Brian Hibbs Indiana University South Bend Gihoon Hong Indiana University South Bend Abstract This
More informationThe Impact of Immigration on Wages of Unskilled Workers
The Impact of Immigration on Wages of Unskilled Workers Giovanni Peri Immigrants did not contribute to the national decline in wages at the national level for native-born workers without a college education.
More informationChanges in Wage Inequality in Canada: An Interprovincial Perspective
s u m m a r y Changes in Wage Inequality in Canada: An Interprovincial Perspective Nicole M. Fortin and Thomas Lemieux t the national level, Canada, like many industrialized countries, has Aexperienced
More informationChapter 4 Specific Factors and Income Distribution
Chapter 4 Specific Factors and Income Distribution Chapter Organization Introduction The Specific Factors Model International Trade in the Specific Factors Model Income Distribution and the Gains from
More informationRewriting the Rules of the Market Economy to Achieve Shared Prosperity. Joseph E. Stiglitz New York June 2016
Rewriting the Rules of the Market Economy to Achieve Shared Prosperity Joseph E. Stiglitz New York June 2016 Enormous growth in inequality Especially in US, and countries that have followed US model Multiple
More informationIII. Wage Inequality and Labour Market Institutions. A. Changes over Time and Cross-Countries Comparisons
III. Wage Inequality and Labour Market Institutions A. Changes over Time and Cross-Countries Comparisons 1. Stylized Facts 1. Overall Wage Inequality 2. Residual Wage Dispersion 3. Returns to Skills/Education
More informationChapter 01 Globalization
Chapter 01 Globalization True / False Questions 1. The notion that national economies are relatively self-contained entities is on the rise. 2. The shift toward a more integrated and interdependent world
More informationLow-paid Work and Economically Vulnerable Families over the Last Two Decades
Catalogue no. 11F0019MIE No. 248 ISSN: 1205-9153 ISBN: 0-662-40119-0 Research Paper Research Paper Analytical Studies Branch Research Paper Series Low-paid Work and Economically Vulnerable Families over
More informationIs Economic Development Good for Gender Equality? Income Growth and Poverty
Is Economic Development Good for Gender Equality? February 25 and 27, 2003 Income Growth and Poverty Evidence from many countries shows that while economic growth has not eliminated poverty, the share
More informationOpenness and Poverty Reduction in the Long and Short Run. Mark R. Rosenzweig. Harvard University. October 2003
Openness and Poverty Reduction in the Long and Short Run Mark R. Rosenzweig Harvard University October 2003 Prepared for the Conference on The Future of Globalization Yale University. October 10-11, 2003
More informationTrade Policy, Agreements and Taxation of Multinationals
Trade Policy, Agreements and Taxation of Multinationals Rising Wage Inequality and Trade Lecture 1 Meredith Crowley University of Cambridge July 2015 MC (University of Cambridge) Trade Policy, Agreements
More informationand with support from BRIEFING NOTE 1
and with support from BRIEFING NOTE 1 Inequality and growth: the contrasting stories of Brazil and India Concern with inequality used to be confined to the political left, but today it has spread to a
More informationTrade, foreign investment, and wage inequality in developing countries
Alessandro Cigno University of Florence, Italy, and IZA, Germany Trade, foreign investment, and wage inequality in developing countries Exposure to foreign trade raises the skill premium in countries with
More informationMidterm Exam Economics 181 PLEASE SHOW YOUR WORK! PUT YOUR NAME AND TA s NAME ON ALL PAGES 100 Points Total
NAME Midterm Exam Economics 8 PLEASE SHOW YOUR WORK! PUT YOUR NAME AND TA s NAME ON ALL PAGES 00 Points Total PART I. Short-Answer. (40 points). Please explain your work whenever possible. 8 questions
More informationInternational Trade Theory College of International Studies University of Tsukuba Hisahiro Naito
International Trade Theory College of International Studies University of Tsukuba Hisahiro Naito The specific factors model allows trade to affect income distribution as in H-O model. Assumptions of the
More informationOver the past three decades, the share of middle-skill jobs in the
The Vanishing Middle: Job Polarization and Workers Response to the Decline in Middle-Skill Jobs By Didem Tüzemen and Jonathan Willis Over the past three decades, the share of middle-skill jobs in the United
More informationTRADE LIBERALIZATION AND LABOR MARKETS IN DEVELOPING COUNTRIES: THEORY AND EVIDENCE. Jorge Saba Arbache* June 2001
ISSN: 1466-0814 TRADE LIBERALIZATION AND LABOR MARKETS IN DEVELOPING COUNTRIES: THEORY AND EVIDENCE Jorge Saba Arbache* June 2001 Abstract This paper presents a review of the theoretical and empirical
More informationAsia-Pacific to comprise two-thirds of global middle class by 2030, Report says
Strictly embargoed until 14 March 2013, 12:00 PM EDT (New York), 4:00 PM GMT (London) Asia-Pacific to comprise two-thirds of global middle class by 2030, Report says 2013 Human Development Report says
More informationGlobalization: What Did We Miss?
Globalization: What Did We Miss? Paul Krugman March 2018 Concerns about possible adverse effects from globalization aren t new. In particular, as U.S. income inequality began rising in the 1980s, many
More informationThe Impact of Computers and Globalization on U.S. Wage Inequality
The Impact of Computers and Globalization on U.S. Wage Inequality Jana Kerkvliet ABSTRACT. The late 1970s and early 1980s was a time of rising wage inequality in the United States, particularly between
More informationThe impacts of minimum wage policy in china
The impacts of minimum wage policy in china Mixed results for women, youth and migrants Li Shi and Carl Lin With support from: The chapter is submitted by guest contributors. Carl Lin is the Assistant
More informationBerkeley Review of Latin American Studies, Fall 2013
Home Share to: Berkeley Review of Latin American Studies, Fall 2013 An American flag featuring the faces of immigrants on display at Ellis Island. (Photo by Ludovic Bertron.) IMMIGRATION The Economic Benefits
More informationWage inequality and skill premium
Lecture 4d: Wage inequality and skill premium Thibault FALLY C181 International Trade Spring 2018 (Continuation of chapter 4) Skilled vs. unskilled labor As mentioned earlier, we can reinterpret HO model
More informationGeneral Discussion: Cross-Border Macroeconomic Implications of Demographic Change
General Discussion: Cross-Border Macroeconomic Implications of Demographic Change Chair: Lawrence H. Summers Mr. Sinai: Not much attention has been paid so far to the demographics of immigration and its
More information3 How might lower EU migration affect the UK economy after Brexit? 1
3 How might lower EU migration affect the UK economy after Brexit? 1 Key points EU migrants have played an increasing role in the UK economy since enlargement of the EU in 24, with particularly large impacts
More informationRural and Urban Migrants in India:
Rural and Urban Migrants in India: 1983-2008 Viktoria Hnatkovska and Amartya Lahiri July 2014 Abstract This paper characterizes the gross and net migration flows between rural and urban areas in India
More informationHIGHLIGHTS. There is a clear trend in the OECD area towards. which is reflected in the economic and innovative performance of certain OECD countries.
HIGHLIGHTS The ability to create, distribute and exploit knowledge is increasingly central to competitive advantage, wealth creation and better standards of living. The STI Scoreboard 2001 presents the
More informationThe Impact of Interprovincial Migration on Aggregate Output and Labour Productivity in Canada,
The Impact of Interprovincial Migration on Aggregate Output and Labour Productivity in Canada, 1987-26 Andrew Sharpe, Jean-Francois Arsenault, and Daniel Ershov 1 Centre for the Study of Living Standards
More informationGender Issues and Employment in Asia
J ERE R. BEHRMAN AND ZHENG ZHANG Abstract A major means of engaging women more in development processes is increasingly productive employment. This paper adds perspective on gender issues and employment
More information10/11/2017. Chapter 6. The graph shows that average hourly earnings for employees (and selfemployed people) doubled since 1960
Chapter 6 1. Discuss three US labor market trends since 1960 2. Use supply and demand to explain the labor market 3. Use supply and demand to explain employment and real wage trends since 1960 4. Define
More informationLabor Force Structure Change and Thai Labor Market,
Labor Force Structure Change and Thai Labor Market, 1990-2008 Chairat Aemkulwat * Chulalongkorn University Abstract: The paper analyzes labor force transformation over 1990-2008 in terms of changes in
More informationGLOBALISATION AND WAGE INEQUALITIES,
GLOBALISATION AND WAGE INEQUALITIES, 1870 1970 IDS WORKING PAPER 73 Edward Anderson SUMMARY This paper studies the impact of globalisation on wage inequality in eight now-developed countries during the
More informationCHAPTER 10: Fundamentals of International Political Economy
1. China s economy now ranks as what number in terms of size? a. First b. Second c. Third d. Fourth 2. China s economy has grown by what factor each year since 1980? a. Three b. Five c. Seven d. Ten 3.
More informationtitle, Routledge, September 2008: 234x156:
Trade Policy, Inequality and Performance in Indian Manufacturing Kunal Sen IDPM, University of Manchester Presentation based on my book of the same title, Routledge, September 2008: 234x156: 198pp, Hb:
More informationCompetitiveness: A Blessing or a Curse for Gender Equality? Yana van der Muelen Rodgers
Competitiveness: A Blessing or a Curse for Gender Equality? Yana van der Muelen Rodgers Selected Paper prepared for presentation at the International Agricultural Trade Research Consortium s (IATRC s)
More informationTRADE IN SERVICES AND INCOME INEQUALITY IN DEVELOPING ECONOMIES
TRADE IN SERVICES AND INCOME INEQUALITY IN DEVELOPING ECONOMIES 1 Rashmi Ahuja With technological revolution, trade in services has now gained a lot of importance in the trade literature. This paper discusses
More informationEPI BRIEFING PAPER. Immigration and Wages Methodological advancements confirm modest gains for native workers. Executive summary
EPI BRIEFING PAPER Economic Policy Institute February 4, 2010 Briefing Paper #255 Immigration and Wages Methodological advancements confirm modest gains for native workers By Heidi Shierholz Executive
More informationWage Structure and Gender Earnings Differentials in China and. India*
Wage Structure and Gender Earnings Differentials in China and India* Jong-Wha Lee # Korea University Dainn Wie * National Graduate Institute for Policy Studies September 2015 * Lee: Economics Department,
More informationThe impact of Chinese import competition on the local structure of employment and wages in France
No. 57 February 218 The impact of Chinese import competition on the local structure of employment and wages in France Clément Malgouyres External Trade and Structural Policies Research Division This Rue
More informationInclusive growth and development founded on decent work for all
Inclusive growth and development founded on decent work for all Statement by Mr Guy Ryder, Director-General International Labour Organization International Monetary and Financial Committee Washington D.C.,
More informationEmployment outcomes of postsecondary educated immigrants, 2006 Census
Employment outcomes of postsecondary educated immigrants, 2006 Census Li Xue and Li Xu September 2010 Research and Evaluation The views and opinions expressed in this document are those of the author(s)
More informationRe s e a r c h a n d E v a l u a t i o n. L i X u e. A p r i l
The Labour Market Progression of the LSIC Immigrants A Pe r s p e c t i v e f r o m t h e S e c o n d Wa v e o f t h e L o n g i t u d i n a l S u r v e y o f I m m i g r a n t s t o C a n a d a ( L S
More informationPost-Secondary Education, Training and Labour September Profile of the New Brunswick Labour Force
Post-Secondary Education, Training and Labour September 2018 Profile of the New Brunswick Labour Force Contents Population Trends... 2 Key Labour Force Statistics... 5 New Brunswick Overview... 5 Sub-Regional
More informationUNDP: Urgent job creation on a mass scale key to stability in the Arab region
Strictly embargoed until 14 March 2013, 12:00 PM EDT (New York), 4:00 PM GMT (London) UNDP: Urgent job creation on a mass scale key to stability in the Arab region Mexico City, 14 March 2013 Arab States
More informationThe Wage Effects of Immigration and Emigration
The Wage Effects of Immigration and Emigration Frederic Docquier (UCL) Caglar Ozden (World Bank) Giovanni Peri (UC Davis) December 20 th, 2010 FRDB Workshop Objective Establish a minimal common framework
More informationThe Impact of Foreign Workers on the Labour Market of Cyprus
Cyprus Economic Policy Review, Vol. 1, No. 2, pp. 37-49 (2007) 1450-4561 The Impact of Foreign Workers on the Labour Market of Cyprus Louis N. Christofides, Sofronis Clerides, Costas Hadjiyiannis and Michel
More informationTRADE LIBERALIZATION AND ITS IMPACT ON THE RELATIVE WAGE AND EMPLOYMENT OF UNSKILLED WORKERS IN THE UNITED STATES
Trade Liberalization and its Impact on the Relative Wage and Employment of Unskilled Workers in the United States TRADE LIBERALIZATION AND ITS IMPACT ON THE RELATIVE WAGE AND EMPLOYMENT OF UNSKILLED WORKERS
More informationGender Gap of Immigrant Groups in the United States
The Park Place Economist Volume 11 Issue 1 Article 14 2003 Gender Gap of Immigrant Groups in the United States Desislava Hristova '03 Illinois Wesleyan University Recommended Citation Hristova '03, Desislava
More informationLabour Market Reform, Rural Migration and Income Inequality in China -- A Dynamic General Equilibrium Analysis
Labour Market Reform, Rural Migration and Income Inequality in China -- A Dynamic General Equilibrium Analysis Yinhua Mai And Xiujian Peng Centre of Policy Studies Monash University Australia April 2011
More informationInequality and the Global Middle Class
ANALYZING GLOBAL TRENDS for Business and Society Week 3 Inequality and the Global Middle Class Mauro F. Guillén Mini-Lecture 3.1 This week we will analyze recent trends in: Global inequality and poverty.
More informationAboriginal Youth, Education, and Labour Market Outcomes 1
13 Aboriginal Youth, Education, and Labour Market Outcomes 1 Jeremy Hull Introduction Recently, there have been many concerns raised in Canada about labour market shortages and the aging of the labour
More informationThe Comparative Advantage of Nations: Shifting Trends and Policy Implications
The Comparative Advantage of Nations: Shifting Trends and Policy Implications The Nobel Prize-winning economist Paul Samuelson once famously argued that comparative advantage was the clearest example of
More informationTrade, Technology, and Institutions: How Do They Affect Wage Inequality? Evidence from Indian Manufacturing. Amit Sadhukhan 1.
Trade, Technology, and Institutions: How Do They Affect Wage Inequality? Evidence from Indian Manufacturing Amit Sadhukhan 1 (Draft version) Abstract The phenomenon of rising income/wage inequality observed
More informationInternational Trade & Income Inequality in Japan
International Trade & Income Inequality in Japan By Ayumu Tanaka Author Ayumu Tanaka Introduction How international trade affects wage inequality is one of the major questions in international economics.
More informationIn class, we have framed poverty in four different ways: poverty in terms of
Sandra Yu In class, we have framed poverty in four different ways: poverty in terms of deviance, dependence, economic growth and capability, and political disenfranchisement. In this paper, I will focus
More informationTrade Liberalization and Wage Inequality in India: A Mandated Wage Equation Approach
Trade Liberalization and Wage Inequality in India: A Mandated Wage Equation Approach Prachi Mishra Research Department, IMF Deb Kusum Das Ramjas College, Delhi University July 2012 Abstract This paper
More informationUnemployment Rises Sharply Among Latino Immigrants in 2008
Report February 12, 2009 Unemployment Rises Sharply Among Latino Immigrants in 2008 Rakesh Kochhar Associate Director for Research, Pew Hispanic Center The Pew Hispanic Center is a nonpartisan research
More informationThe Factor Content of U.S. Trade: An Explanation for the Widening Wage Gap?
The Factor Content of U.S. Trade: An Explanation for the Widening Wage Gap? Chinkook Lee Kenneth Hanson Presented at Western Agricultural Economics Association 1997 Annual Meeting July 13-16, 1997 Reno/Sparks,
More informationNotes on exam in International Economics, 16 January, Answer the following five questions in a short and concise fashion: (5 points each)
Question 1. (25 points) Notes on exam in International Economics, 16 January, 2009 Answer the following five questions in a short and concise fashion: (5 points each) a) What are the main differences between
More informationChina, India and the Doubling of the Global Labor Force: who pays the price of globalization?
The Asia-Pacific Journal Japan Focus Volume 3 Issue 8 Aug 03, 2005 China, India and the Doubling of the Global Labor Force: who pays the price of globalization? Richard Freeman China, India and the Doubling
More informationTrends in low-income levels
FEATURE ARTICLE Income Inequality and Low Income in Canada Garnett Picot Statistics Canada John Myles University of Toronto and Statistics Canada Trends in low-income levels and income inequality in Canada
More informationGlobal Employment Trends for Women
December 12 Global Employment Trends for Women Executive summary International Labour Organization Geneva Global Employment Trends for Women 2012 Executive summary 1 Executive summary An analysis of five
More informationSource: Piketty Saez. Share (in %), excluding capital gains. Figure 1: The top decile income share in the U.S., % 45% 40% 35% 30% 25%
The Hecksher-Ohlin-Samuelson (HOS) model Extension of Ricardian model: trade is explained by comparative advantage but those are based on:du modèle ricardien: - differences of endowments in factors of
More informationDoes Immigration Help or Hurt Less-Educated Americans? Testimony of Harry J. Holzer before the U.S. Senate Judiciary Committee
Does Immigration Help or Hurt Less-Educated Americans? Testimony of Harry J. Holzer before the U.S. Senate Judiciary Committee April 25, 2006 The views expressed are those of the author and should not
More informationIntroduction [to Imports, Exports, and Jobs]
Upjohn Press Book Chapters Upjohn Research home page 2002 Introduction [to Imports, Exports, and Jobs] Lori G. Kletzer University of California, Santa Cruz Citation Kletzer, Lori G. 2002. "Introduction."
More informationCleavages in Public Preferences about Globalization
3 Cleavages in Public Preferences about Globalization Given the evidence presented in chapter 2 on preferences about globalization policies, an important question to explore is whether any opinion cleavages
More informationQuarterly Labour Market Report. February 2017
Quarterly Labour Market Report February 2017 MB14052 Feb 2017 Ministry of Business, Innovation and Employment (MBIE) Hikina Whakatutuki - Lifting to make successful MBIE develops and delivers policy, services,
More informationThe China Syndrome. Local Labor Market Effects of Import Competition in the United States. David H. Autor, David Dorn, and Gordon H.
The China Syndrome Local Labor Market Effects of Import Competition in the United States David H. Autor, David Dorn, and Gordon H. Hanson AER, 2013 presented by Federico Curci April 9, 2014 Autor, Dorn,
More informationImmigrant STEM Workers in the Canadian Economy: Skill Utilization and Earnings
Immigrant STEM Workers in the Canadian Economy: Skill Utilization and Earnings Garnett Picot* and Feng Hou**, *Research and Evaluation Branch, IRCC, and **Statistics Canada March 2018 1 Abstract This study
More informationOrganized by. In collaboration with. Posh Raj Pandey South Asia Watch on Trade, Economics & Environment (SAWTEE)
Posh Raj Pandey South Asia Watch on Trade, Economics & Environment (SAWTEE) Training on International Trading System 7 February 2012 Kathamndu Organized by South Asia Watch on Trade, Economics & Environment
More informationThe Impact of Trade Liberalization on the Gender Wage Gap in the Labor Market
Skidmore College Creative Matter Economics Student Theses and Capstone Projects Economics 2017 The Impact of Trade Liberalization on the Gender Wage Gap in the Labor Market Kaiyao Xu Skidmore College Follow
More informationChapter 4: Specific Factors and
Chapter 4: Specific Factors and Income Distribution Chapter Organization Introduction The Specific Factors Model International Trade in the Specific Factors Model Income Distribution and the Gains from
More informationGlobalisation and Open Markets
Wolfgang LEHMACHER Globalisation and Open Markets July 2009 What is Globalisation? Globalisation is a process of increasing global integration, which has had a large number of positive effects for nations
More informationPOPULATION STUDIES RESEARCH BRIEF ISSUE Number
POPULATION STUDIES RESEARCH BRIEF ISSUE Number 2008021 School for Social and Policy Research 2008 Population Studies Group School for Social and Policy Research Charles Darwin University Northern Territory
More informationEUROBAROMETER 71 PUBLIC OPINION IN THE EUROPEAN UNION SPRING
Standard Eurobarometer European Commission EUROBAROMETER 71 PUBLIC OPINION IN THE EUROPEAN UNION SPRING 2009 Standard Eurobarometer 71 / SPRING 2009 TNS Opinion & Social Standard Eurobarometer NATIONAL
More informationDo Highly Educated Immigrants Perform Differently in the Canadian and U.S. Labour Markets?
Catalogue no. 11F0019M No. 329 ISSN 1205-9153 ISBN 978-1-100-17669-7 Research Paper Analytical Studies Branch Research Paper Series Do Highly Educated Immigrants Perform Differently in the Canadian and
More informationCURRENT ANALYSIS. Growth in our own backyard... March 2014
93619 CURRENT ANALYSIS March 14 Composition of the Canadian population % of total adult population 15+ 8 6 4 2 14.1.9 14.9 42.5 * Labour Force Participation Rate % of Population in the Labour Force 69
More informationExplaining the 40 Year Old Wage Differential: Race and Gender in the United States
Explaining the 40 Year Old Wage Differential: Race and Gender in the United States Karl David Boulware and Jamein Cunningham December 2016 *Preliminary - do not cite without permission* A basic fact of
More informationAlberta Population Projection
Alberta Population Projection 213 241 August 16, 213 1. Highlights Population growth to continue, but at a moderating pace Alberta s population is expected to expand by 2 million people through 241, from
More informationTrends in Wages, Underemployment, and Mobility among Part-Time Workers. Jerry A. Jacobs Department of Sociology University of Pennsylvania
Institute for Research on Poverty Discussion Paper no. 1021-93 Trends in Wages, Underemployment, and Mobility among Part-Time Workers Jerry A. Jacobs Department of Sociology University of Pennsylvania
More informationTechnological Change, Skill Demand, and Wage Inequality in Indonesia
Cornell University ILR School DigitalCommons@ILR International Publications Key Workplace Documents 3-2013 Technological Change, Skill Demand, and Wage Inequality in Indonesia Jong-Wha Lee Korea University
More informationPopulation Composition
Unit-II Chapter-3 People of any country are diverse in many respects. Each person is unique in her/his own way. People can be distinguished by their age, sex and their place of residence. Some of the other
More informationGlobalization, Technology and Inequality
Globalization, Technology and Inequality Gino Gancia (CREI and Barcelona GSE) Email: ggancia@crei.cat February 2012 Revised, November 2012 Prepared for Els Opuscles del CREI Abstract What are the effects
More information11. Demographic Transition in Rural China:
11. Demographic Transition in Rural China: A field survey of five provinces Funing Zhong and Jing Xiang Introduction Rural urban migration and labour mobility are major drivers of China s recent economic
More informationAppendix A: Economic Development and Culture Trends in Toronto Data Analysis
Appendix A: Economic Development and Culture Trends in Toronto Data Analysis Introduction The proposed lenses presented in the EDC Divisional Strategy Conversation Guide are based in part on a data review.
More informationInequality and Mexico s labor market after trade reform
Inequality and Mexico s labor market after trade reform Cesar Patricio Bouillon Inter-American Development Bank and Georgetown University October 2000 The author is grateful to James Albrecth, Susan Collins,
More informationThe Trends of Income Inequality and Poverty and a Profile of
http://www.info.tdri.or.th/library/quarterly/text/d90_3.htm Page 1 of 6 Published in TDRI Quarterly Review Vol. 5 No. 4 December 1990, pp. 14-19 Editor: Nancy Conklin The Trends of Income Inequality and
More information