Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Are Your Wages Set in Beijing?
Journal of Economic Perspectives
(pp. 15–32)
(Complimentary)
Abstract
The economic troubles of less-skilled workers in the United States. and OECD-Europe during a period of rising manufacturing imports from third world countries has created a debate about whether, in a global economy, wages or employment are determined by the global rather than domestic labor-market conditions. One side argues that trade is all that matters; another side, that trade does not matter at all. The author rejects these polar views; empirical analysis has found modest but real trade effects in displacement of less-skilled labor and declines in the price of goods produced by low-skilled workers.Citation
Freeman, Richard B. 1995. "Are Your Wages Set in Beijing?" Journal of Economic Perspectives 9 (3): 15–32. DOI: 10.1257/jep.9.3.15JEL Classification
- J31 Wage Level and Structure; Wage Differentials
- F14 Country and Industry Studies of Trade
- J23 Labor Demand