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European Unemployment, US Wages, and the Asian Emergence

Author

Listed:
  • Tyers, R.
  • Yang, Y.

Abstract

This paper adapts a more general yet standard global model to investigate international effects of wage regulation and of the Asian emergence. The Davis result that European unemployment raises the wage in the US is supported, though the generalisations in our model greatly weaken it. By contrast the Asian emergence is found to confer on the northern economies a terms of trade gain and overall economic expansion. The effect is to reduce, rather than increase, European unemployment even while it raises European wage inequality.

Suggested Citation

  • Tyers, R. & Yang, Y., 1999. "European Unemployment, US Wages, and the Asian Emergence," Papers 367, Australian National University - Department of Economics.
    • Handle: RePEc:fth:aunaec:367
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    Cited by:

    1. Rod Tyers & William Coleman, 2005. "Beyond Brigden: Australia’s Pre-War Manufacturing Tariffs, Real Wages and Economic Size," ANU Working Papers in Economics and Econometrics 2005-456, Australian National University, College of Business and Economics, School of Economics.
    2. Rod Tyers & Yongzheng Yang, 2004. "The Asian Recession and Northern Labour Markets," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 58-75, March.

    More about this item

    Keywords

    TRADE ; WAGES ; UNEMPLOYMENT;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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