The use of formal education in Denmark 1980-1992



24

Trade and wages

The factor remuneration inequality (16) is in table 5 illustrated with numerical examples.

Table 5: Numerical samples of factor content of exports and possible differences in cross

country wages.

Factor
content in
Denmarks
export
(calculated)

Factor remunerations

(assumed)

Product

Denmark
wd

World

wg

Difference
wg-wd

CASE 1: Full factor price equalisation

A________

B

B*A

Capital_________________________________

Unknown

______10

_______10

________0

_________0

No formal education__________________

_______266

______80

______80

_________0

_________0

Vocational____________________________

_______210

100

100

________0

_________0

Further_______________________________

________60

120

120

________0

_________0

SUM______________________

_______536

_________0

CASE 2: Compressed Danish wage
structure________________________________

A

wd

wg

B

B*A

Capital_________________________________

Unknown

______10

______10

________0

_________0

No formal education__________________

_______266

______90

______80

-10

-2660

Vocational____________________________

_______210

100

100

________0

_________0

Further_______________________________

________60

110

100

_______10

600

SUM______________________

_______536

-2060

CASE 3: De-compressed Danish wage
structure________________________________

wg

wg

wg-wd

Capital_________________________________

Unknown

10

10

0

_________0

No formal education__________________

_______266

______70

______80

_______10

2660

Skilled, technical_________________________

_______210

100

100

_________0

_________0

Skilled, other_____________________________

________60

130

120

-10

-600

SUM______________________

_______536

2060

Factor content in Denmarks export Pd Xjdg are calculated on the basis of Danish input-
output-tables and labour force statistics. The result for three types of education in 1992 are
seen in this first column of table 5: 266.000 persons with no formal education, above 60 years
or still students, 210.000 with vocational education, and 60.000 with further education, cf. also



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