Trade and the wage structure in the presence of price differentials in theproduct market: The Japanese labor market 1965-1990

The decomposition of demand into domestic, export, and import components in a cross-industry study of 18 two-digit manufacturing industries suggests t hat export growth has less of an impact on interindustry wage differentials than the equivalent growth in domestic demand. The difference seems to be greatest in the case of full-time workers in large firms. This result for J apan is different from those of similar studies for the United States and i s consistent with a model of industry rent-sharing with domestic-internatio nal price differentials in the product market. J. Japan. Int. Econ., March 1999, 13(1), pp. 22-43. Nissan Institute of Japanese Studies, Oxford Univer sity, 27 Winchester Rd., Oxford OX2 6NA, England. (C) 1999 Academic Press.