Please use this identifier to cite or link to this item:
Title: On wage-inequalities in the North and in the South
Authors: Leung, H.-M. 
Issue Date: 1998
Citation: Leung, H.-M. (1998). On wage-inequalities in the North and in the South. Journal of International Trade and Economic Development 7 (3) : 299-315. ScholarBank@NUS Repository.
Abstract: Northern, developed, skilled-labour rich countries have, in recent years, faced increasing competition from Southern, developing, unskilled-labour rich countries. Many have blamed the South for aggravating the wage-inequality in the North. We build a hybrid model with Heckscher-Ohlin and Ricardian characteristics to tackle this issue. Relative demand for the skilled-labour-intensive good (eg cars, computers and computer software) plays a bigger role here than elsewhere in the literature. We find the usual H-O mechanism leads to relative wage convergence, divergence or reversal depending on the relative strength of relative demand, technology and endowment effects. More provacative results arise from innovation/imitation considerations: northern innovation aggravates Northern wage-inequality but alleviates Southern wage-inequality; Southern imitation alleviates Northern wage-inequality but aggravates Southern wage-inequality.
Source Title: Journal of International Trade and Economic Development
ISSN: 09638199
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

Page view(s)

checked on May 23, 2019

Google ScholarTM


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.