Trade, Technology, and Wage Inequality / Gordon H. Hanson, Ann Harrison.

Format:

Book

Author/Creator:

Hanson, Gordon H.

Contributor:

National Bureau of Economic Research.

Harrison, Ann.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5110.

NBER working paper series no. w5110

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1995.

Summary:

In Mexico during the 1980s, the wages of more-educated, more- experienced workers rose relative to those of less-educated, less- experienced workers. We assess the extent to which the increase in the skilled-unskilled wage gap was associated with Mexico's recent trade reform. In particular, we examine whether trade reform has shifted employment towards industries that are relatively intensive in the use of skilled labor (Stolper-Samuelson-type effects). The results suggest that the rising wage gap is associated with changes internal to industries and even internal to plants that cannot be explained by Stolper-Samuelson-type effects. We also find that other characteristics associated with globalization -- such as foreign investment and export orientation -- matter. Exporting firms and joint ventures pay higher wages to skilled workers and demand more skilled labor than other firms.

Notes:

Print version record

May 1995.