Premium
S tolper– S amuelson Time Series: Long‐Term US Wage Adjustment
Author(s) -
Thompson Henry
Publication year - 2013
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12021
Subject(s) - economics , wage , term (time) , product (mathematics) , capital (architecture) , production (economics) , econometrics , series (stratigraphy) , microeconomics , labour economics , mathematics , paleontology , physics , geometry , archaeology , quantum mechanics , biology , history
Factor prices adjust to product prices in the S tolper– S amuelson theorem of the factor proportions model. The present paper estimates adjustment in the average US wage to changes in prices of manufactures and services with yearly data from 1949 to 2006. Difference equation analysis is based directly on the comparative static factor proportions model. Factors of production are fixed capital assets and the labor force. Results have implications for theory and policy.