Abstract
This paper explores the transmission of demographic pressure between open economies. The implications of labor force growth for wages, employment, and production patterns are formally examined. These issues are explored theoretically in a formal dual trade model incorporating features of both standard factor-based trade models and models of two-way trade based on product differentiation and returns to specialization. Sufficient conditions for positive trade linkages between labor force growth in one region and real wage erosion in another are derived. These conditions are then examined numerically in the context of projected non-OECD labor force growth. Copyright 1996 by Royal Economic Society.
| Original language | English |
|---|---|
| Journal | The Economic Journal |
| Volume | 106 |
| Publication status | Published - Nov 1996 |
Fields of science
- 405002 Agricultural economics
- 502 Economics
- 502001 Labour market policy
- 502002 Labour economics
- 502003 Foreign trade
- 502009 Corporate finance
- 502010 Public finance
- 502012 Industrial management
- 502013 Industrial economics
- 502018 Macroeconomics
- 502020 Market research
- 502021 Microeconomics
- 502025 Econometrics
- 502027 Political economy
- 502039 Structural policy
- 502042 Environmental economics
- 502046 Economic policy
- 502047 Economic theory
- 504014 Gender studies
- 506004 European integration
- 507016 Regional economy
- 303010 Health economics
