Wage-differential Argument

Wage-differential argument in Global Commerce Policy

In this regard, a definition of this issue is as follows: the proposition that countries with low wages are able to undercut countries with high wages, and that they therefore enjoy a competitive advantage. The entries on trade policy are here. Economists have been satisfied for 150 years that this is not the case, and that the difference in wages can be accounted for by a gap in productivity. The entries on trade policy are here. In trade policy the argument lives on, and it underlies part of the debate on trade and labour standards and the alleged need for a social clause. See also race-to-the-bottom argument.[1]

Wage-differential argumentin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Wage-differential argument” entry (OAS)

See Also