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Factor Price Equalisation and Trade Patterns with Unemployment

Author

Listed:
  • Oslington, Paul

    (University of Oxford and Deakin University)

Abstract

This paper extends the technique of integrated equilibrium analysis to con - sider a trading world with unemployment due to a wage floor. Unlike previous models with wage floors, world goods prices and patterns of production are endogenous. This more general analysis of a trading world allows questions of the effect of unemployment on the likelihood of factor price equalisation and the factor content of trade to be addressed. Results are relevant to the recent debates over trade and wage inequality/unemployment, to empirical tests of factor proportions theories of trade, and to the international harmonisation of labour standards.

Suggested Citation

  • Oslington, Paul, 2000. "Factor Price Equalisation and Trade Patterns with Unemployment," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 127-144.
    • Handle: RePEc:ris:integr:0127
    as

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    More about this item

    Keywords

    Integrated equilibrium; Unemployment; Minimum wage;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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