It has been over fifty years since Stolper and Samuelson (1941) pointed out that whereas free trade may be beneficial to a country in aggregate terms, even a broadbased factor such as labor may be hurt by the price changes which trade brings about. In particular, a staple of Heckscher-Ohlin...

This paper examines the connection between a terms-of-trade improvement and the real wage rate for a country that is immersed in a trading world with many traded commodities as well as a non-tradeable. There is an array of commodities that are imported but not produced at home, and the price of...