Advertisement

Concluding Remarks

Chapter
Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

Abstract

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.

Keywords

Wage inequality International trade HOS model Factor content of trade Offshoring 

References

  1. Ahn, S., Fukao, K., & Ito, K. (2008). Outsourcing in East Asia and its impact on the Japanese and Korean labour markets. OECD Trade Policy Papers No. 65, OECD Publishing.Google Scholar
  2. Feenstra, R. C. (2004). Advanced international trade: Theory and evidence. New Jersey: Princeton University Press.Google Scholar
  3. Feenstra, R. C. (2010). Offshoring in the global economy. Cambridge, MA: The MIT Press.Google Scholar
  4. Feenstra, R. C., & Hanson, G. (1995). Foreign investment, outsourcing and relative wages, National Bureau of Economic Research Working Paper Series No. 5121.Google Scholar
  5. Feenstra, R. C., & Hanson, G. (1996). Globalization, outsourcing, and wage inequality. The American Economic Review, 86, 240–245.Google Scholar
  6. Feenstra, R. C., & Hanson, G. (1999). The impact of outsourcing and high-technology capital on wages: Estimates for the United States, 1979–1990. The Quarterly Journal of Economics, 114, 907–940.CrossRefGoogle Scholar
  7. Kawaguchi, D., & Mori, Y. (2014). Winning the race against technology. Bank of Japan Working Paper Series No. 14-E-5.Google Scholar

Copyright information

© Development Bank of Japan 2017

Authors and Affiliations

  1. 1.Department of EconomicsSenshu UniversityKanagawaJapan
  2. 2.Research Institute of Capital FormationDevelopment Bank of JapanTokyoJapan

Personalised recommendations