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Rising Trade and Falling Wages: A Review of the Theory and the Empirics

In: Global Trade and European Workers

Author

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  • Paul Brenton

Abstract

Does trade impoverish unskilled workers in Western industrial countries? This is an emotive way of framing a question which has received a great deal of attention from economists in recent years: to what extent has trade with labour-abundant low-wage economies affected Western labour markets? Currently, it is imports from Asia which dominate discussions, although these issues are equally pertinent for trade with Eastern Europe, the countries of the CIS (Former Soviet Union), and Latin America. We are not the only ones to try and catch the eye in this way, Freeman (1995) rather provocatively asks: ‘are your wages being set in Beijing?’

Suggested Citation

  • Paul Brenton, 1999. "Rising Trade and Falling Wages: A Review of the Theory and the Empirics," Palgrave Macmillan Books, in: Paul Brenton & Jacques Pelkmans (ed.), Global Trade and European Workers, chapter 2, pages 18-38, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-27035-4_2
    DOI: 10.1007/978-1-349-27035-4_2
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    Citations

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    Cited by:

    1. Rigby, D L & Breau, Sebastien, 2007. "Impacts of Trade on Wage Quality in Los Angeles: Analysis Using Matched Employer-Employee Data," Center for Global, International and Regional Studies, Working Paper Series qt0fh5z1hf, Center for Global, International and Regional Studies, UC Santa Cruz.
    2. David Rigby & Sebastien Breau, 2006. "Impacts of Trade on Wage Inequality in Los Angeles: Analysis Using Matched Employer-Employee Data," Working Papers 06-12, Center for Economic Studies, U.S. Census Bureau.
    3. Lihong Yun, 2008. "Technical Progress and Labour Demand in Swedish Manufacturing Firms," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 147-167, June.

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