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Does trade with low-wage countries hurt American workers?

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  • Stephen Golub

Abstract

Does trade with low-wage countries steal American jobs and, hence, rob American workers of higher wages and a higher standard of living? Most economists think trade is not guilty as charged. Instead, they cite concepts such as comparative and absolute advantage and differences in productivity to explain why trade, particularly trade with low-wage countries, doesn't pack the economic wallop its critics claim. In this article, Steve Golub shows that popular fears are based on a misunderstanding of the causes and effects of wage disparities.

Suggested Citation

  • Stephen Golub, 1998. "Does trade with low-wage countries hurt American workers?," Business Review, Federal Reserve Bank of Philadelphia, issue Mar, pages 3-15.
    • Handle: RePEc:fip:fedpbr:y:1998:i:mar:p:3-15
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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/1998/march-april/brma98sg.pdf
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    References listed on IDEAS

    as
    1. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
    2. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Investment, Outsourcing and Relative Wages," NBER Working Papers 5121, National Bureau of Economic Research, Inc.
    3. Stephen Golub, 1995. "Comparative and absolute advantage in the Asia-Pacific region," Pacific Basin Working Paper Series 95-09, Federal Reserve Bank of San Francisco.
    4. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, vol. 40(3-5), pages 941-949, April.
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