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
More intriguing information
1. The name is absent2. INSTITUTIONS AND PRICE TRANSMISSION IN THE VIETNAMESE HOG MARKET
3. The name is absent
4. Voluntary Teaming and Effort
5. The name is absent
6. Response speeds of direct and securitized real estate to shocks in the fundamentals
7. An Empirical Analysis of the Curvature Factor of the Term Structure of Interest Rates
8. Credit Markets and the Propagation of Monetary Policy Shocks
9. The name is absent
10. A model-free approach to delta hedging