Chapter

Past and Future

Adrian Wood

in North-South Trade, Employment and Inequality

Published in print July 1995 | ISBN: 9780198290155
Published online November 2003 | e-ISBN: 9780191597015 | DOI: http://dx.doi.org/10.1093/0198290152.003.0009

Series: IDS Development Studies

 Past and Future

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Whether past trends in North–South trade, and their effects on skilled and unskilled workers, continue in the future, or cease or change, depends on the future course of reductions in barriers to trade and the relative supply of skilled and unskilled labour in the North and in different parts of the South. Barriers to trade, both natural and artificial, will probably continue to decline, bringing an ever‐widening range of goods and services within the scope of the skill‐based North–South division of labour. More exports of labour‐intensive manufactures from low‐income countries will lower their world prices and widen wage differentials in middle‐income countries. Rising skill supplies in middle‐income countries will intensify competition in the least skill‐intensive traded sectors in the North and further widen skill differentials there.

Keywords: competition; differentials; labour; skill; supply; trade; wage

Chapter.  8524 words.  Illustrated.

Subjects: International Economics

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