Does European Unemployment Prop up American Wages?

We consider trade between a flexible wage America and a rigid real wage Europe. In a benchmark case, a move from autarky to free trade doubles the European unemployment rate, while it raises the American unskilled wage to the high European level. Entry of the unskilled South to world markets raises unemployment in Europe. But Europe's commitment to the high wage completely insulates America from the shock. Immigration to America raises American income, but lowers European income dollar-for-dollar, while European unemployment rises one-for-one. We consider a stylized game of the choice of factor market institutions. Mitterand's Europe chooses a high minimum wage and Reagan's America chooses a flexible wage for the unskilled. Paradoxically, unskilled workers are worse off in Europe. Trade equalizes wages, but Europeans bear all of the unemployment required to sustain the high wage.

Trade Liberalization and Income Distribution

Empirical work relating trade liberalization and income distributed has iden- tified an important anomaly. The Stolper-Samuelson theorem predict trade liberalization will shift income toward a country's abundant factor. For developing countries, this suggests liberalization will principally benefit the abundant unskilled labor. Yet extensive empirical studies have identified many cases with a contrary result. This paper develops a simple theoretical explanation for this anomaly. It shows that countries which are labor abundant in a global sense may see wages decline with liberalization if they are capital abundant in a local sense. The current absence of empirical work that would allow us to identify the relevant local abundance implies that virtually all assertions regarding anticipated distributional consequences of trade liberalization are without foundation. There may likewise be important implications for industrialized countries that border developing countries undertaking trade liberalization, particularly in regard to the incentives for migration.

Before Virtue: Halakhah, Dharmasastra, and What Law Can Create

Davis, referring to the traditional Jewish and Hindu legal texts, addresses on what law creates or produces. He focuses on both Jewish and Hindu jurisprudence claim that law can create--a human, not a biological homo sapiens, but rather the full ideal of what humans were meant to be. He argues that it is the essential indistinguishability of law and religion in both traditional Judaism and Hinduism that permits the ideal human to be created through religious law

Panel 3: Challenges for Europe´s political institutions and society

Globalisierung, Arbeitsteilung, Arbeitsorganisation, Welt, EU-Staaten, Globalization, Division of labour, Work organization, World, EU countries

Technology, Unemployment, and Relative Wages in a Global Economy

Arguably the most important development in recent decades in US factor markets is the decline in the relative wage of the unskilled. By contrast, in Europe it is undoubtedly the rise and persistence of unemployment. Technology has been identified as a key reason for the rising US wage inequality, while labor market rigidities are often cited as a key reason for European unemployment. This paper seeks to provide a unified account of these major factor market developments. It models the impact of technical change on relative wages and unemployment in a world in which one country has flexible and the other rigid labor market institutions. The results depart significantly but sensibly from what one would expect in a fully flexible wage world. A few stylized facts help to narrow the field to a few candidates to account for these factor market developments.

Near-Earth asteroids: Observer alert network and database analysis

The Planetary Science Institute (PSI) was funded by SERCulpr to develop a communication network to alert observers of newly discovered near-earth asteroids (NEA's). This network is intended to encourage observers to obtain physical observations of NEA's, which are needed in order to characterize and assess the resource potential of these bodies. This network was declared operational in October 1990 via an announcement to the asteroid observing community. The PSI is also supported to develop the Near-Earth Asteroid Database (NEAD), a comprehensive database of physical and dynamical data on NEA's. In the past year, the database was updated on newly discovered NEA's during 1990, and new data on radar observations and dynamical classifications were added

Near-Earth asteroids: Observer alert network and physical observations

This project strives to obtain physical observations on newly discovered Near-Earth Objects (NEO's) in order to provide fundamental data needed to assess the resources available in the population. The goal is acquiring data on all objects brighter than magnitude V= 17.0. To accomplish this, an electronic mail alert and observer information service that informs observers around the world as to the status of physical observations on currently observable NEO's was established. Such data is also acquired ourselves through a cooperative program with European colleagues that uses telescopes on La Palma to obtain spectra of NEO's and through observations made from a local telescope on Tumamoc Hill. This latter telescope has the advantage that large amounts of observing time are available, so that whenever a new NEO's discovered, we can be assured of getting time to observe it

What's behind volatile import prices from China?

In a sharp departure from earlier trends, the price of U.S. imports from China rose 6 percent in the 2006-08 period. To explore the forces behind this surprising increase, the authors create a new import index that uses highly disaggregated data to track price developments in different product types. The index reveals that the largest price increases were concentrated in industrial supplies - goods that rely heavily on commodity inputs. The authors conclude that the surge in commodity prices through mid-2008 was the primary driver of the rising import prices from China.Price indexes ; Imports - Prices ; Commodity exchanges ; Petroleum industry and trade

Bones, Bombs and Break Points: The Geography of Economic Activity

We consider the distribution of economic activity within a country in light of three leading theories - increasing returns, random growth, and locational fundamentals. To do so, we examine the distribution of regional population in Japan from the Stone Age to the modern era. We also consider the Allied bombing of Japanese cities in WWII as a shock to relative city sizes. Our results support a hybrid theory in which locational fundamentals establish the spatial pattern of relative regional densities, but increasing returns may help to determine the degree of spatial differentiation. One implication of these results is that even large temporary shocks to urban areas have no long-run impact on city size.