Stolper-Samuelson

Author
Abstract

This paper examines the relationship between price growth and
skill intensity across 150 manufacturing industries between 1989
and 1995. There are two main findings. First, wage growth and
intermediate goods price increases are passed through to final
product prices roughly in proportion to their factor shares.
Second, product prices have grown relatively less in sectors that
more intensively utilize less-skilled labor. The latter finding
is consistent with the Stolper-Samuelson theory of expanded trade
with countries that are abundant in less-skilled workers, as well
as with some models of technological change.

Year of Publication
1997
Number
375
Date Published
01/1997
Publication Language
eng
Citation Key
8024
Krueger, A. . (1997). Labor Market Shifts and the Price Puzzle Revisited. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01bc386j21k (Original work published January 1997)
Working Papers