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Wage sensitivity rankings and temporal convergence

Author

Listed:
  • Ronald W. Jones
  • J. Peter Neary

Abstract

This paper examines the two-sector general equilibrium model under a variety of labor-market distortions, including minimum wages and factor price differentials (both absolute and proportional). We introduce a new concept - the "wage sensitivity" ranking between sectors - and show that a necessary and sufficient condition for temporal convergence locally is that the physically labor-intensive sector be the wage-sensitive sector.

Suggested Citation

  • Ronald W. Jones & J. Peter Neary, 1988. "Wage sensitivity rankings and temporal convergence," Working Papers 198805, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:198805
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    File URL: http://hdl.handle.net/10197/1449
    File Function: First version, 1988
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    Cited by:

    1. Stephen Devadoss & Wongun Song, 2003. "Oligopsonistic Intermediate Input and Patterns of Trade," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 77-97.
    2. Ronald W. Jones & Sugata Marjit, 2003. "Economic Development, Trade and Wages," German Economic Review, Verein für Socialpolitik, vol. 4(1), pages 1-17, February.

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