Training, Skill Distribution, and Income Disparity in a North-South Trade Model

  • 研討會日期 : 2003-04-08
  • 時間 : 15:00
  • 主講人 : Prof. Hesham M. Abdel-Rahman
  • 地點 : B棟110室
  • 演講者簡介 : Prof. Hesham M. Abdel-Rahman為Ph.D.,University of Pennsylvania (1987)。 現為Dept. of Economics and Finance,University of New Orleans教授。 其主要研究領域為International Trade、Labor Market及Urban Economics and Regional Development。
  • 演講摘要 : What are the impacts of free trade agreement on the social welfare of different types of labor force in a developed country? What are the factors that determine income disparity? What is the impact of free trade on a developed country’s income disparity? What is the effect of free trade on the skill distribution of a developed country? The objective of this paper is to address the above questions in a simple general-equilibrium North-South trade mode in which both countries produce one final good and one high-tech intermediate input. The high-tech intermediate input is produced by horizontally differentiated skilled workers. The final good is produced with the use of a high-tech intermediate input and unskilled labor. Each country is populated by a continuum of unskilled workers with differential potential ability. Workers in the North and South can acquire skill by investment in training or education. Thus, skill distribution in the North and South is determined endogenously in the model through a self-selection. I characterize two different types of equilibrium: a closed-economy equilibrium without trade and a free trade equilibrium. Then, I investigate the impact of free trade, in the presence of training costs, on the skill distribution within each country, income disparity, and social welfare.