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dc.contributor.authorRattsø, Jørnen_US
dc.contributor.authorStokke, Hildegunnen_US
dc.date.accessioned2010-09-13T15:01:54Z-
dc.date.available2010-09-13T15:01:54Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/39942-
dc.description.abstractInternational trade may influence income distribution. This study takes as a starting point the puzzling development of relative wages between skilled and unskilled labor in South Africa. Wage inequality decreased during the sanctions period and increased with trade liberalization post Apartheid, contrary to the standard trade theory prediction for an economy with comparative advantage in unskilled labor. We calibrate a Ramsey growth model for South Africa to clarify and quantify the distributive effects of trade barriers, and offer an understanding of the South African experience based on the interaction between openness and skill biased technical change. The dependence on foreign technology increases with openness and gives higher degree of skill bias, which may explain the observed relative wage path. Our model calibration is an alternative to econometric studies separating between trade and technology effects. A counterfactual analysis shows that without sanctions and protectionism during the 1980s the skilled-unskilled wage gap is about 13% larger on average. The quantitative results imply that an increase in trade as share of GDP of 10% points generates an increase in the wage gap of 6.6%. The analysis reveals a tradeoff between growth and distribution.en_US
dc.language.isoengen_US
dc.publisherVerein für Socialpolitik, Ausschuss für Entwicklungsländer Göttingenen_US
dc.relation.ispartofseriesProceedings of the German Development Economics Conference, Frankfurt a.M. 2009 34en_US
dc.subject.jelF16en_US
dc.subject.jelO33en_US
dc.subject.jelO41en_US
dc.subject.jelO55en_US
dc.subject.ddc330en_US
dc.subject.keywordWage gapen_US
dc.subject.keywordproductivity growthen_US
dc.subject.keywordskill biasen_US
dc.subject.keywordSouth Africaen_US
dc.titleWage inequality, comparative advantage and skill biased technical change in South Africaen_US
dc.typeConference Paperen_US
dc.identifier.ppn654196443-
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:gdec09:34-
Appears in Collections:Proceedings of the German Development Economics Conference, 2009 (Frankfurt a.M.)

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