No. 405: The Trade and Labour Approaches to Wage Inequality

Jonathan E. Haskel , Queen Mary and Westfield College, University of London

July 1, 1999

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Abstract

We compare the trade and labour approaches to wage inequality. We first look at the theoretical differences, stressing the different roles ascribed to sector and factor bias, labour supply and the theory of technical change in trade models with endogenous prices. We then briefly review some of the evidence on the sector bias of prices and technology.

J.E.L classification codes: F16, J31, O33

Keywords:Wage inequality, Technical change, Stolper-Samuelson effects