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Nordic Economic Policy Review

Globalization, labour market institutions and wage structure

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The Nordic Economic Policy Review is published by the Nordic Council of Ministers and addresses policy issues in a way that is useful for in-formed non-specialists as well as for professional economists. All articles are commissioned from leading professional economists and are subject to peer review prior to publication. The review appears twice a year. It is published electronically on the website of the Nordic Council of Ministers: www.norden.org/en. On that website, you can also order paper copies of the Review (enter the name of the Review in the search field, and you will find all the information you need). Managing Editor: Professor Torben M. Andersen, Department of Economics, University of Aarhus, Denmark. Special Editors for this volume: Research Professor Erling Barth, Institute for Social Research, Oslo, Norway and Professor Kalle O. Moene, Department of Economics, University of Oslo, Norway.

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Comment on Felbermayr and Prat: Efficiency gains from trade and labor market outcomes

Do the productivity gains associated with international trade and globalization reduce unemployment and income dispersion? This is the question addressed in the fine article by Gabriel Felbermayr and Julien Prat. Since the public discussion is obsessed by the possible adverse effects of trade on jobs and inequality, the overall conclusion that trade liberalization leads to a lower rate of unemployment and has an ambiguous effect on wage dispersion may come as a surprise.

English

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