TY  - JOUR
AU  - Harrigan, James
TI  - International Trade and American Wages in General Equilibrium, 1967 -   1995
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6609
PY  - 1998
Y2  - June 1998
DO  - 10.3386/w6609
UR  - http://www.nber.org/papers/w6609
L1  - http://www.nber.org/papers/w6609.pdf
N1  - Author contact info:
James Harrigan
Department of Economics
University of Virginia
P.O. Box 400182
Charlottesville, VA 22904-4182
Tel: 434-243-8354
Fax: 434-982-2904
E-Mail: harrigan@nber.org
M1  - published as James Harrigan . "International Trade and American Wages in General Equilibrium, 1967-1995," in Robert C. Feenstra, editor, "The Impact of International Trade on Wages" University of Chicago Press (2000)

AB  - In the last quarter century, wage inequality has increased dramatically in the United States. At the same time, the US has become more integrated into the world economy prices of final goods have changed, the capital stock has more than doubled has become steadily more educated. This paper estimates a flexible, empirical equilibrium model of wage determination in an attempt to sort out the connections between these trends. Aggregate data on prices and quantities of imports, outputs, and factor supplies are constructed from disaggregate sources. The econometric analysis concludes that wage inequality has been partly driven by changes in relative factor supplies and relative final goods prices. In contrast, imports have played a negligible direct role.
ER  -