TY  - JOUR
AU  - Baldwin, Robert E
TI  - Inferring Relative Factor Price Changes from Quantitative Data
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7019
PY  - 1999
Y2  - March 1999
DO  - 10.3386/w7019
UR  - http://www.nber.org/papers/w7019
L1  - http://www.nber.org/papers/w7019.pdf
N1  - Author contact info:
Robert E. Baldwin
University of Wisconsin-Madison
Department of Economics
7321 Social Science Building
1180 Observatory Drive
Madison, WI  53706
Tel: 608/263-7397
Fax: 608/263-3876;608/233-8284
E-Mail: rebaldwi@facstaff.wisc.edu
M1  - published as Robert E. Baldwin. "Inferring Relative Factor Price Changes from Quantitative Data," in Magnus Blomstrom and Linda S. Goldberg, editors, "Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey" University of Chicago Press (2001)

AB  - This paper considers the appropriateness of using such quantitative measures as changes in the factor content of trade and the behavior of factor proportions within versus among industries to draw inferences about changes in relative factor prices.  The conclusion reached is that only under special assumptions are such linkages justified.  Using these special assumptions of Cobb-Douglas or CES production functions and preferences, a final section of the paper presents empirical estimates of how trade may have affected the U.S. wage gap between more educated and less educated workers in recent years.
ER  -