TY  - JOUR
AU  - Davis,Donald R.
AU  - Reeve,Trevor A.
TI  - Human Capital, Unemployment, and Relative Wages in a Global Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6133
PY  - 1997
Y2  - August 1997
UR  - http://www.nber.org/papers/w6133
L1  - http://www.nber.org/papers/w6133.pdf
N1  - Author contact info:
Donald R. Davis
Columbia University, Department of Economics
1038 Intl. Affairs Building
420 West 118th St.
New York, NY 10027
Tel: 212/854-4037
Fax: 212/854-8059
E-Mail: drd28@columbia.edu
AB  - This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a global economy.  It builds on the models of Davis (1997a, b) of trade between a flexible wage America and a rigid wage Europe. To this it adds a model of human capital accumulation based on Findlay and Kierzkowski (1983).  A variety of comparative statics are examined, including changes in educational capital and population, entry of new countries to the trading world, technical change, and a productivity slowdown.  We derive the consequences for the skilled-to-unskilled wage gap, unemployment, and skill composition.
ER  -