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We depart from the trade and wages literature and its emphasis on North-South trade, examining North-North by … developing the basic linkages between trade-based integration and relative wages in an Ethier-type division of labor model. Using … this model we identify a formal relationship between international trade, productivity, and wages. We then examine the …
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The effects of trade among similar countries and that among dissimilar countries on the relative wage are examined. Product quality is a choice variable by firms. Quantity production is assumed to satisfy constant costs, while quality production is more skilled-labor intensive than quantity...
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an increasing share of available income, while low-skilled workers have seen an absolute decline in real wages. How and …
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