
doi: 10.1007/bf00924914
Recent studies suggest that inter-industry wage differentials exist which are neither caused by different endownments of the workers with human capital, nor by different working conditions, nor by institutional rigidities. Higher employment in high-wage sectors due to exports, therefore, raises welfare. According to empirical evidence presented here more likely than not net exports from sectors paying wage premia lead to some “extra” gains from trade (that cannot be explained by trade policy promoting “primary” sectors by high amounts of subsidies per employee) for the German economy. A case is made, however, against strategic trade policy in favour of these sectors pointing to uncertainty about the amount of the differentials, their international (dis)similarity, and their sources.
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