Two tales of trade: broadly, economists agree that trade has had little effect on the wages of unskilled workers in rich countries. They disagree about why
Article Abstract:
Economic research on the wage earnings differential between educated and unskilled workers agree that technology rather than foreign trade most affects the differential. The two factions agree that because trade's effect is so small, a restriction on trade is not the best approach to improving the low-skilled worker's lot. The two groups differ in terms of how trade affects the differential, through volume of trade or through prices. Foreign trade may affect wages as a result of import/export prices. Labor economists disagree, saying that it is the volume of international trade rather than the prices that effects change: imported goods from low-skilled workers affects a country's economy the same as a similar influx of low-skilled labor would.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1997
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The sorry state of saving
Article Abstract:
The US economy is generally strong due to low inflation and unemployment, but the declining rate of personal savings is worrying economists. On average, Americans saved only 4.3% of their disposable incomes during 1996. The latest statistics show consumption is raising.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1997
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