Trade, Technology and U.K. Wage Inequality

Global Production Sharing and Rising Inequality: A Survey of Trade and Wages

“…Haskel and Slaughter (2000) show that in the 1970's U.S. manufacturing industries with higher tariffs and higher transportation costs tended to have lower relative employment of nonproduction workers, and that over the period [1974][1975][1976][1977][1978][1979][1980][1981][1982][1983][1984][1985][1986][1987][1988] The United Kingdom is another country that has experienced rising wage inequality of the same magnitude as the United States. Haskel and Slaughter (2001) apply the two-stage estimation procedure of Feenstra and Hanson (1999) to data on U.K. manufacturing industries over the period , using as structural variables union density (the share of union workers in industry employment), industry concentration (share of sales by the five largest firms), innovations per industry, import prices, and computerization (share of firms in the industry using computers). They find that TFP growth is higher in industries with more innovations, lower initial union density, lower initial sales concentration, and larger reductions in import prices (but is unrelated with computerization).…”

Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence from India

“…There are two main channels that Rodrik (1997) points out. Firstly, trade reforms allow cheaper imports of intermediate and capital inputs as well as of semi-finished goods and unassembled parts for 1 Important contributions to the literature on the impact of international trade (and globalization in general) on wages and wage inequality have been made by Borjas and Ramey (1995), Feenstra (2000), Feenstra andHanson (1996, 1997), Harrigan (1998), Harrison and Hanson (1999), Hanson and Harrison (1999), Haskel and Slaughter (2001), Lawrence and Slaughter (1993), Revenga (1992Revenga ( , 1997,and Slaughter (1999). 2 In this context, we would also like to point out that this very impact of trade liberalization on labor demand elasticity will, in periods of sustained productivity growth, lead to higher wage and employment growth than prior to the reforms.…”

Trade Reforms, Labor Regulations and Labor-Demand Elasticities: Empirical Evidence from India

“…There are two main channels that Rodrik (1997) points out. Firstly, trade reforms allow cheaper imports of intermediate and capital inputs as well as of semi-finished goods and unassembled parts for 1 Important contributions to the literature on the impact of international trade (and globalization in general) on wages and wage inequality have been made by Borjas and Ramey (1995), Feenstra (2000), Feenstra andHanson (1996, 1997), Hanson and Harrison (1999), Harrigan (1998), Harrison and Hanson (1999), Haskel and Slaughter (2001), Lawrence and Slaughter (1993), Revenga (1992Revenga ( , 1997,and Slaughter (1999). 2 In this context, we would also like to point out that this very impact of trade liberalization on labor-demand elasticity will, in periods of sustained productivity growth, lead to higher wage and employment growth than prior to the reforms.…”