We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
International Trade and Real Wages.
- Authors
FIGUEROA, ADOLFO
- Abstract
The facts indicate that real wage rates tend to be homogenous within the First World, but they exhibit significant differences between the First World and the Third World. The standard neoclassical trade model predicts real wage equalization across countries. This prediction is consistent with the first fact, but is refuted by the second. On the other hand, the standard Ricardian model does not predict real wage equalization, so in principle these facts do not refute the model; however, it is unable to explain the wages-profits distribution. This paper proposes a generalized Ricardian trade model, which solves this theoretical difficulty. The generalized model is able to explain both facts about real wages and international trade. On epistemological grounds, the Ricardian theory proves to be superior to the neoclassical theory.
- Subjects
INTERNATIONAL trade; REAL wages; INCOME inequality; RICARDIAN Model of International Trade; DEVELOPING countries; DEVELOPED countries
- Publication
Economía (02544415), 2017, Vol 40, Issue 80, p9
- ISSN
0254-4415
- Publication type
Article
- DOI
10.18800/economia.201702.001