HAS INTERNATIONAL-TRADE DISFAVOURED UNSKILLED WORKERS

In this paper we analyse whether the increase in international trade h as hurt unskilled workers in comparison with skilled workers in the Da nish labour market. First, we look explicitly at the textile industry; and second, we apply a very specific method which assumes that the He ckscher-Ohlin model is the ''correct'' model to use as the basis for a n empirical analysis. With many reservations, it can be stated that ou r results indicate that unskilled workers seem to have lost ground rel ative to skilled workers. Our results also indicate that the Danish la bour market is not sufficiently flexible to avoid unemployment problem s arising as a result of more international trade.