Factor bias and technical progress

The role of factor bias in technical progress has been a bone of contention between labor economists and international trade theorists. By considering progress that results in finite changes in techniques these two views can be reconciled. For example, labor-saving technical progress can result in l owered real wages, even if it is concentrated in the more labor-intensive o f two commodities initially produced. (C) 2000 Elsevier Science S.A. All ri ghts reserved.