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Competition, Trade and Wages.

Abstract:

I review briefly the empirical evidence in the trade and wages debate, which overwhelmingly rejects the Heckscher-Ohlin explanation for recent increases in OECD skill premia. I then argue that the same evidence is also difficult to reconcile in general equilibrium with the view that exogenous skill-biased technological progress is the sole culprit. Finally, I present a model of oligopolistic competition, which is more consistent with the evidence. Removing quantitative import constraints (a m...

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Volume:
2732
Publication date:
2001-01-01
URN:
uuid:71570dd1-7675-4b2c-9f09-cc22ed560687
Local pid:
oai:economics.ouls.ox.ac.uk:11730
Language:
English

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