Trade and relative wages: the role of supervisory function by skilled workers

摘要

The effect of trade on relative wages is examined taking into consideration some aspects of internal organization of firms, namely, the twin function of production and supervision by skilled workers. When trade is based on endowment differences, theeffect of trade is greater than is predicted by the Stolper-Samuelson theorem. When trade is based on technological differences, freer trade tends to reduce the relative wages in each country in a two-country world economy.