search query: @author Lundborg, P. / total: 11
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| Author: | Agell, J. Lundborg, P. |
| Title: | Fair wages in the open economy |
| Journal: | Economica
1995 : AUG, VOL. 62:247, p. 335-352 |
| Index terms: | ECONOMICS OPEN ECONOMY PAY |
| Language: | eng |
| Abstract: | The authors show how an extended theory of fair wages can be incorporated in the two-by-two Heckscher-Ohlin model. An important feature of the model is the existence of involuntary unemployment. Several results stand out. First, there is no longer a simple relation between measures of factor abundance and trade patterns. Second, factor-price equalization will generally not occur. Third, differences in social norms explain why terms of trade shocks produce nonuniform adjustments in real wages and unemployment across otherwise similar countries. |
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