Trade, Wage Gaps, and Specific Human Capital Accumulation
We develop a new framework for the analysis of the impact of trade liberalization on the wage structure and on welfare. Our model focuses on the decision of workers to accumulate firm-specific skills, by "on-the-job" training, knowing that this means their future wages will have to be negotiated, and that the outcome of negotiation will depend on the profitability prospect of firms operating in a new trading environment. We show that trade liberalization may reduce the welfare of a developing country because of its adverse effect on skill accumulation. We also explore the effects of trade liberalization on the wage gap between skilled and unskilled workers. Copyright © 2007 The Authors.
Year of publication: |
2007
|
---|---|
Authors: | Long, Ngo Van ; Riezman, Raymond ; Soubeyran, Antoine |
Published in: |
Review of International Economics. - Wiley Blackwell, ISSN 0965-7576. - Vol. 15.2007, 1, p. 75-92
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Trade, wage gaps, and specific human capital accumulation
Long, Ngo Van, (2007)
-
Trade, wage gaps, and specific human capital accumulation
Long, Ngo Van, (2003)
-
Long, Ngo Van, (2005)
- More ...