Using annual data for 21 OECD countries over the period 1960 to 1993 this paper tests whether real wages have converged to a common mean alongside with increasing openness, as predicted by the factor price equalization theorem. The empirical estimates...
Using annual data for 21 OECD countries over the period 1960 to 1993 this paper tests whether real wages have converged to a common mean alongside with increasing openness, as predicted by the factor price equalization theorem. The empirical estimates suggest that real wage convergence has taken place in most OECD countries. ([EL F02, J3)