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Addendum: The imputed effects of US tariffs on wages

Author

Listed:
  • Thompson, Alexi
  • Thompson, Henry
Abstract
This addendum to a recent paper in this journal finding no imputed effect of US tariffs on the average wage separates the skilled wage based on a college degree. The imputed effect attributes all variation in the price of import competing goods to tariffs. Second order error correction estimates based on a factor proportions model with annual data from 1983 to 2019 prove reliable with fixed capital assets imbedding technological progress. Tariffs lower the skilled wage but have no effect on the “unskilled” wage. The implication in the factor proportions model is that tariffs raise the capital return.

Suggested Citation

  • Thompson, Alexi & Thompson, Henry, 2023. "Addendum: The imputed effects of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 564-569.
    • Handle: RePEc:eee:reveco:v:86:y:2023:i:c:p:564-569
    DOI: 10.1016/j.iref.2023.03.045
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    References listed on IDEAS

    as
    1. Chad Brown & Paola Conconi & Aksel Erbahar & Lorenzo Trimarchi, 2020. "Trade Protection Along Supply Chains," Working Papers ECARES 2020-52, ULB -- Universite Libre de Bruxelles.
    2. Alberto Cavallo & Gita Gopinath & Brent Neiman & Jenny Tang, 2021. "Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 19-34, March.
    3. Thompson, Alexi & Thompson, Henry, 2021. "The imputed effect of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 191-197.
    4. Indro Dasgupta & Thomas Osang, 2007. "Trade, Wages, and Specific Factors," Review of International Economics, Wiley Blackwell, vol. 15(1), pages 45-61, February.
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    13. Pablo D Fajgelbaum & Pinelopi K Goldberg & Patrick J Kennedy & Amit K Khandelwal, 2020. "The Return to Protectionism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(1), pages 1-55.
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    More about this item

    Keywords

    Tariffs; Skilled wages;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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