Suppose the capital is mobile between sectors but that there

Suppose the capital is mobile between sectors but that there are two kinds of specific labor: skilled and unskilled. If skilled labor prefers autarky to free trade, what can you say about the number of skilled workers relative to the number of unskilled workers?

Solution

We can say that no. Of skilled labours is less than unskilled. In other words country is abundant in unskilled labours. Thus trade will led to less returns for skilled and harm them. This is conclusion of stopler samulson theorem . That is why they prefer autarky

Suppose the capital is mobile between sectors but that there are two kinds of specific labor: skilled and unskilled. If skilled labor prefers autarky to free tr

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