Immigrants and Natives in General Equilibrium Trade Models

Daniel Trefler

No 6209, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper makes three observations about international trade and immigration. (i)" Borjas has argued that immigration may yield a net social benefit even though it hurts those less-skilled workers who directly compete with immigrants. I show that this closed-economy" argument unravels when imbedded in the Ricardian or Heckscher-Ohlin models of international" trade. (ii) Following Wood and Feenstra-Hanson, I argue that within an industry those goods" produced abroad use more unskilled labor than those goods produced in the United States. How" much more depends on whether the good is produced in a developed or developing country. " After transparently incorporating this into a new factor content study I find that changes in U.S." trade patterns almost certainly battered wages of those at the very bottom of the skill ladder. (iii)" Despite globalization pressures, I find little evidence of earnings convergence for a sample of 75" countries over the 1963-92 period. This holds true even after controlling for education and workers' industry of affiliation.

JEL-codes: F1 F2 (search for similar items in EconPapers)
Date: 1997-10
Note: ITI LS
References: Add references at CitEc
Citations: View citations in EconPapers (22)

Published as In The Immigration Debate: Studies on the Economic, Demographic, and Fiscal Effects of Immigration, Smith, James P., ed., Washington, D.C.: National Academy Press, 1998, pp. 206-238.

Downloads: (external link)
http://www.nber.org/papers/w6209.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:6209

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w6209

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().