Say there are two occupations - A and B, and plenty of workers. Let's pick occupation A, and order workers from lowest to highest ability/productivity. Which is the formal term to describe the situation where the aforementioned order:

  1. leads also to an ordering from lowest to highest in occupation B? Absolute advantage? Positive correlation?

  2. leads to the exact opposite ordering in B, i.e. from highest to lowest? Comparative advantage? Negative correlation?

  3. produces no particular order in B?

I am looking for formal terminology from labor economics, but I can't find it. So far I am using absolute and comparative advantage, but that is not exactly the definition used in international trade theory. References are greatly appreciated.


Your Answer

By clicking "Post Your Answer", you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.