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 |
Factor remunerations (assumed) |
Product | |||
Denmark |
World wg |
Difference | |||
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 |
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 |
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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