Download or read book Trade and Technology as Competing Explanations for Rising Inequality written by Wolf-Heimo Grieben and published by Peter Lang Pub Incorporated. This book was released on 2003 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the late 1970s, wage inequality between skilled and unskilled workers has risen significantly in most OECD countries. This study thoroughly discusses and evaluates the three dominant approaches to explain this finding: trade liberalization towards developing countries, skill-biased technical change, and trade-induced skill-biased technical change. In particular, the author develops a two-country North-South Schumpeterian growth model without scale effects, and analyzes general equilibrium effects of trade, education and labor market policies. Moreover, this framework is also used to analyze whether rising low-skilled unemployment in Europe is just the flip side of the coin of rising wage inequality in the US.