A Review of the Role of Labor in Recent International Trade Models

Abstract

The traditional focus of international trade theory has had limited overlap with the analytical orientation of practitioners in the field of human resource management and industrial relations (HRM/IR). This is an unfortunate lapse since both areas are concerned with the issues of industrial growth, employment, and income distribution - issues that are closely related to international comparative advantage and commercial policy. Recently, trade economists have begun to explore the implications of international trade for issues that have previously been considered the domain of labor economists, such as the individual's decision to acquire an education, the likelihood of labor action in an industry, and the size of the union wage premium over a competitive sector. This review is intended to stimulate HRM/IR economists to consider general equilibrium influences on the behavior of labor and to invite suggestions concerning the treatment of labor issues in international trade models.Research Seminar in International Economics, Department of Economics, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/100652/1/ECON127.pd

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