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In the last quarter century, wage inequality has increased dramatically in the United States. At the same time, the US has become more integrated into the world economy prices of final goods have changed, the capital stock has more than doubled has become steadily more educated. This paper...
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We develop an empirical framework to assess the importance of trade and technical change on the wages of production and … outsourcing and expenditures on high-technology equipment can explain a substantial amount of the increase in the wages of …
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trade on U.S. wages. The standard model of general equilibrium presented shows that each effect tends to be opposite in sign … same, not oppo- site effect on wages at both skill levels; a rise in the foreign share in world innovation or US patents … decreases US wages; an increase in the US share in world innovation or US patents raises US wages, especially for the less …
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