Non-Traded Goods, Technical Progress and Real Wages
Open Economies Review
We use a general equilibrium model of trade to show that technical improvement may indeed cause a fall in the wages of unskilled workers. Under some modest conditions, the wages of skilled workers may go down too.
“Non-traded Goods, Technical Progress and Real Wages,” (with H. Beladi), Open Economies Review 19, 2008: 507-515.