Fair wages, unemployment and technological change in a global economy

• 成果类型: Article
• 署名作者: Kreickemeier, Udo; Nelson, Douglas
• 署名单位: University of Nottingham; Tulane University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2005.11.003
• 发表日期: 2006
• 页码: 451-469
• 关键词: fair wages; unemployment; virtual integrated equilibrium; factor price equalization

摘要

This paper analyzes the effects of global and national technological change on employment and relative wages in an integrated two-country world (Europe and America), where both countries are characterized by equilibrium unemployment due to fair wage constraints. The asymmetry between the countries arises from country-specific preferences towards wage inequality, with Europe's preferences being more egalitarian. Furthermore, we look at integration between this two-country world and a third country (low-wage south). We derive an analytical tool, the Virtual Integrated Equilibrium, that allows us to adapt Dixit and Norman's Integrated Equilibrium approach to a situation where both countries have endogenous unemployment levels. (c) 2006 Elsevier B.V. All rights reserved.