Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33368 
Authors: 
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion Papers No. 1817
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper integrates institutionally determined wage rigidities into an otherwise standard Heckscher-Ohlin model of international trade. It accounts for differences in individual productivities and their implications for individual wage incomes and demand for education. Although preserving the factor-price-equalization property of the global equilibrium approach, the model does not support the view expressed by Davis (1998) that global equilibrium links insulate the US labor market from exogenous shocks. It provides a foundation of the derived from comparative studies that do not consistently account for the global general equilibrium links.
Subjects: 
wage rigidities
international trade
education
skill-specific unemployment
JEL: 
F11
J31
Document Type: 
Working Paper

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