Many years have passed since the decline in the relative wages of unskilled labor to skilled labor in the US and other developed countries in the West captured the attention of academia, economists, and policy makers. Similar wage movements have been observed in the Japanese manufacturing labor market since the 1990s, although the degree of wage inequality is far less than that of the US and other developed countries. Our book shows that Japan in not an exception to the fact that increased trade in the 1990s and 2000s led to an increase in the relative demand for skilled labor, thereby expanding the wage inequality between skilled and unskilled labor. However, it should be noted that the analysis in this book, which is based on the traditional international trade theory of the HOS model, can only partly explain the whole mechanism of the widening wage inequality observed. This chapter summarizes the main findings of the book and addresses the remaining issues for further research.
KeywordsWage inequality International trade HOS model Factor content of trade Offshoring
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