Does the Stopler-Samuelson Theorem Explain the Movement in Wages?: The Linkage between Trade and Wages in Latin American Countries

Nov 2000
Stolper-Samuelson (SS) and Specific-Factors (SF) versions make opposite predictions about the correlation between prices and wages of certain types of workers (specific factors in industries) when they are not used intensively. The analysis in this paper provides evidence that may allow one to distinguish empirically between these two versions of the HO model, using wage data from household surveys in several Latin American countries Bolivia, Mexico, and Venezuela.