9409011 Leamer This research will study the consequences of partial economic integration of high-wage and low-wage countries. The study is divided into two parts. In the first part, several alternative theoretical models of economic integration are formulated which focus particularly on the effect of global competition on internal labor markets. The second part of the study uses the theoretical models to develop empirical analyses of the effects of economic integration on employment, prices, wages and other economic outcomes in particular sectors of the economy or among particular groups of workers. This research is of significant interest because the empirical results would improve our understanding of what role trade and investment with low-wage countries might play in eroding or increasing wages in the United States. .
