Will technological improvement and growth in the rest of the
world cause a decline in American living standards? Can government
policy in Japan and Western Europe limit the availability of high-
wage jobs in America? Does expanding trade with Mexico and other
developing countries with large numbers of inexpensive workers
imply a continuing decline in wages for low-skilled American
workers? These questions express a widespread concern about
potential negative effects of import competition on domestic labor
markets, but ignore potential gains to U.S. workers from exports
abroad. Through U.S. exports, the rest of the world is an
increasingly large indirect employer of U.S. workers, and through
imports, foreign labor is an increasingly important potential
substitute for U.S. workers. Bringing together the often diverse
perspectives of international economists, labor economists, and
policymakers, this volume analyzes how international trade affects
the level and distribution of wages and employment in the United
States, examines the need for government intervention, and
evaluates policy options. In addition to the editor, the
contributors are Jagdish Bhagwati, Columbia University and American
Enterprise Institute; J. Bradford De Long, U.S. Department of the
Treasury and University of California, Berkeley; I. M. Destler,
University of Maryland and Institute for International Economics;
Richard B. Freeman, Harvard University and London School of
Economics; Louis Jacobson, WESTAT; Lori G. Kletzer, University of
California, Santa Cruz; Edward Leamer, University of California,
Los Angeles; Michael Piore, Massachusetts Institute of Technology;
Ana Revenga and Claudio Montenegro, The World Bank; Jeffrey D.
Sachs and Howard Shatz, Harvard University.
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