Journal Article

Does trade with low-wage countries hurt American workers?

Abstract: Does trade with low-wage countries steal American jobs and, hence, rob American workers of higher wages and a higher standard of living? Most economists think trade is not guilty as charged. Instead, they cite concepts such as comparative and absolute advantage and differences in productivity to explain why trade, particularly trade with low-wage countries, doesn't pack the economic wallop its critics claim. In this article, Steve Golub shows that popular fears are based on a misunderstanding of the causes and effects of wage disparities.

Keywords: Wages; Developing countries; Hours of labor;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 1998

Issue: Mar

Pages: 3-15