International Trade and the Skill Structure of Wages and Employment in West Germany / Außenhandel und die Qualifikationsstruktur von Löhnen und Beschäftigung in Westdeutschland

Author(s):  
Bernd Fitzenberger

SummaryBuilding on a Heckscher-Ohlin-Samuelson framework with factor price rigidities, this paper provides an empirical analysis of the relationship between trade, technical progress, and the labor market in West Germany for the period from 1970 until 1990. The analysis builds on relative product prices as the major transmission channel of trade effects on the labor market and allows for three skill types of labor. The major findings are that, relative to skilled labor, wages were increasing disproportionately both for low- and high-skilled labor whereas employment trends were favoring higher skill levels monotonically. Import competition as well as total factor productivity were increasing disproportionately in those industries using low- or high-skilled labor intensively. These results are consistent with trade effects dominating for low-skilled labor and technology effects for high-skilled labor while wage bargaining institutions were holding up relative wages of low-skilled labor. The combined effect accounts for the disproportionate increase of unemployment for low-skilled workers.

2014 ◽  
Vol 20 (1) ◽  
pp. 95-119 ◽  
Author(s):  
Luca Paolo Merlino

This paper studies how search externalities and wage bargaining distort vacancy creation and the allocation of workers to jobs in markets with two-sided heterogeneity. To do so, I propose a model of a frictional labor market where heterogeneous workers decide which job to look for and firms decide which technology to adopt. At equilibrium, there is perfect segmentation across sectors, which is determined by a unique threshold of workers' productivity. This threshold is inefficient because of participation and composition externalities. The Pigouvian tax scheme that decentralizes optimal sorting shows that these externalities have opposite signs. Furthermore, their relative strength depends on the distribution of workers' skills, so that when there are many (few) skilled workers, too many (few) high-technology jobs are created.


1995 ◽  
Vol 9 (3) ◽  
pp. 15-32 ◽  
Author(s):  
Richard B Freeman

The economic troubles of less-skilled workers in the United States. and OECD-Europe during a period of rising manufacturing imports from third world countries has created a debate about whether, in a global economy, wages or employment are determined by the global rather than domestic labor-market conditions. One side argues that trade is all that matters; another side, that trade does not matter at all. The author rejects these polar views; empirical analysis has found modest but real trade effects in displacement of less-skilled labor and declines in the price of goods produced by low-skilled workers.


2000 ◽  
Vol 90 (1) ◽  
pp. 73-95 ◽  
Author(s):  
David E Wildasin

This paper presents a general-equilibrium model where human capital investment increases specialization and exposes skilled workers to region-specific earnings risk. Interjurisdictional mobility of skilled labor mitigates these risks; state-contingent migration of skilled labor also improves efficiency. With perfect capital markets, labor-market integration raises welfare and reduces ex post earnings inequality. If instead human capital investment can only be financed through local taxes, labor-market integration leads to interjurisdictional fiscal competition, shifting the burden of taxation to low-skilled immobile workers. Decentralized public provision of human capital investment creates earnings inequalities and is inefficient. (JEL H00)


2021 ◽  
Vol 28 (56) ◽  
pp. 37-56
Author(s):  
Alexis S. Esposto ◽  
Luis Federico Giménez

Over the last three decades the labor market of most developed countries have experienced a sustained period of upskilling. This means an overall increase in the skill requirement of jobs determined by the demand for skilled labor. This suggests that their labor demand has become more skill intensive, shifting towards skilled workers relatively to unskilled workers. An analysis of job growth of the Argentine labor market between 1997 and 2009 using data from the EPH, evidences a process of deskilling over this period, with serious implications in terms of competitiveness and about issues related to increasing social and economic inequality.


Author(s):  
Baoping Guo

The Rybczynski theorem describes the relationship between commodities and factor supplies, holding output price. By releasing holding commodity price, this paper introduces the trade effects of changes of factor endowments both on factor price and on commodity price. This is a study based on trade equilibrium. Technically, the study shows that change of factor endowments lead to a chain effect that Rybczynski’s trade effect triggers the Stolper-Samuelson’s trade effect. The analysis of this paper shows that economic activities, such as the change of factor endowments of any factor of any country reward another factor domestically and internationally. This is a tuneful circle. Trade brings a well-balanced development to the world.


ILR Review ◽  
1980 ◽  
Vol 33 (3) ◽  
pp. 331-341 ◽  
Author(s):  
George E. Johnson

This paper is a theoretical examination of the probable effects on the U.S. labor market of a continued high rate of illegal immigration. The author constructs a model to estimate the impact each additional immigrant has on the employment of the domestic population, on GNP, and on the distribution of income. The model suggests that in non-recessionary periods the most important effect of a high rate of immigration is on the wage rates of low-skilled labor rather than on the employment of low-skilled native workers, but immigration also increases the earnings of high-skilled workers and the owners of capital. In the very long run, the author concludes, this redistribution of income will be offset to some extent by increases in the supplies of skilled labor and capital.


2004 ◽  
pp. 76-94 ◽  
Author(s):  
V. Gimpelson

The article discusses the issue of shortage of skills in the Russian industry. Using microdata from a survey of industrial enterprises, the author confirms that most of employers complain of difficulties in hiring and attaching skilled workers. In case of mass occupations, this shortage relates mostly to low efficient enterprises, which are unable or unwilling to pay competitive market going wage. More efficient and better paying firms are less likely to face shortage of general skills on the labor market but may face limited supply of specific skills.


2020 ◽  
Vol 8 (4) ◽  
pp. 754-760
Author(s):  
Alparslan Ince ◽  

The aim of this study was to compare the relationship between physical education and sports high school students' positive thinking skill levels and attitudes of learning in terms of gender and years of doing sports. The study is a descriptive method, one of the quantitative research methods. The study group consisted of 280 (age: 20.98 ± 1.390) university students from School of Physical Education and Sports in Ordu university. As a result, it was concluded that the students' positive thinking skills were at a high level, and the nature of learning, anxiety, expectation, and openness to learning sub-dimensions of the attitude tolearning scale were at high levels. It was concluded that there is a statistically significant and positive relationship between the nature of learning, Expectation, and openness to learning, and positive thinking skill from sub-dimensions of the attitude to learning scale, but there is a negatively significant relationship between anxiety and positive thinking skills


Author(s):  
Katherine Eva Maich ◽  
Jamie K. McCallum ◽  
Ari Grant-Sasson

This chapter explores the relationship between hours of work and unemployment. When it comes to time spent working in the United States at present, two problems immediately come to light. First, an asymmetrical distribution of working time persists, with some people overworked and others underemployed. Second, hours are increasingly unstable; precarious on-call work scheduling and gig economy–style employment relationships are the canaries in the coal mine of a labor market that produces fewer and fewer stable jobs. It is possible that some kind of shorter hours movement, especially one that places an emphasis on young workers, has the potential to address these problems. Some policies and processes are already in place to transition into a shorter hours economy right now even if those possibilities are mediated by an anti-worker political administration.


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