Does European unemployment prop up American wages? National labor markets and global trade

• 成果类型: Article
• 署名作者: Davis, DR
• 署名单位: Harvard University; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• 发表日期: 1998
• 页码: 478-494
• 关键词: INTERNATIONAL-TRADE

摘要

I consider trade between a flexible-wage America and a rigid-wage Europe. In a benchmark case, a move from autarky to free trade doubles European unemployment. American wages rise to the European level. Entry of the unskilled South to world markets raises European unemployment. Europe's commitment to the high wage wholly insulates America from the shock. Immigration to America raises American income, but lowers European income dollar for dollar, while European unemployment rises. Absent South-North migration of the unskilled from 1970-1990, Europe could have maintained the same wage with from one-eighth to one-fourth less unemployment.