international factor price equalization. Public and politically much concern are given to this
type of negative consequence of internationalization/globalization. The economist view,
however, are more “that trade is a moderate contributing source of income inequality; it may
not overshadow other sources, but it cannot be shrugged away”, (Ricardson 1995). Similar
views can be found in Krugman (1996) and for Germany in Lücke (1996). But the opposite
view is strongly represented in (Wood 1994, 1995).
The two sets of explanations above are based on main stream economic theory, and can in
principle be tested by means of economic reasoning and economic statistics; Leamer (1996)
and Lücke (1996) offer simple models for both. The third type of explanation, education as a
selection device or only influencing: who is producing what, needs to borrow arguments and
theories from sociology, political science etc. No doubt, in the USA and UK which
experienced the largest drops in real wages for the low skilled, majorities of the population in
the 1970s and 1980s voted in favour right wing political leaders who had inequalities, low
taxes, and welfare-cuts as their main objectives. In some European countries voters were in
favour of other social-political priorities.
3. Statistics and Account identities
Contrary to “human capital” education is measurable and countable. The number of people
who have successfully passed through the formal educational system and it tests and examines
can be counted. In Denmark almost all education are public, no or only modest fees are paid
and most student receive apprentice wage and/or financial aid from the state. It is the (macro
economic) outcome of this system, not human capital, that are the object of this study.
In the population census in 1970 Statistics Denmark collected information about the highest
completed education among all Danish residents under 50 years old. This information was
associated to the unique Cental Personal Registration Number (CPR) that have been uses in
Denmark since 1968. Annually for the years since 1970 Statistics Denmark collected
information about completed education (final examination, finished apprenticeships etc.) on
CPR-level from educational institutions etc. For 1980 information about education exists for
all under 60 years old and for 1992 we have information for all Danes under 72 years old.