1994 Reports

Trade and Wages: Choosing among Alternative Explanations

Bhagwati, Jagdish N.

"The experience of decline in real wages of the unskilled workers
(Lu) during the 1980s in the United States, and the increase instead in their
unemployment in Europe (due to the comparative inflexibility of their labour
markets vis-a-vis those of the United States), has prompted a search for
possible explanations. This search has become more acute with the
evidence that the adverse trend for the unskilled has not been mitigated
during the 1990s to date."