Trade, Technology and Labour Markets: Empirical Controversies in the Light of the Jones Model

42 Pages Posted: 30 Jul 2001

See all articles by Michael Pflüger

Michael Pflüger

University of Passau; IZA Institute of Labor Economics; German Institute for Economic Research (DIW Berlin)

Date Written: July 2001

Abstract

The deterioration of the income and employment position of unskilled workers in the OECD area since the 1980s is a well-documented fact. The debate about the causes of this development is dominated by two competing hypotheses, "North-South Trade" or "globalisation" and technological progress. Several empirical strategies have been used to identify the importance of technological and globalisation shocks: factor content analyses, consistency checks, regression analyses and numerical methods. However, no consensus has been achieved so far and there is considerable methodological controversy. This paper uses the Jones model as theoretical backbone to identify and settle the sources of disagreement, to consolidate recent results, to derive new insights and to provide an integrative assessment of the different empirical strategies.

Keywords: North-South Trade, Technology, Wage Inequality, Unemployment

JEL Classification: F16, F21, J31

Suggested Citation

Pflüger, Michael, Trade, Technology and Labour Markets: Empirical Controversies in the Light of the Jones Model (July 2001). IZA Discussion Paper No. 324. Available at SSRN: https://ssrn.com/abstract=276513

Michael Pflüger (Contact Author)

University of Passau ( email )

Innstrasse 27
Passau, 94032
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

German Institute for Economic Research (DIW Berlin)

Mohrenstrasse 58
Berlin, 10117
Germany

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