Trade opening-up between the OECD and emerging countries: Crucially, there are three types of jobs in OECD countries

In the most basic models, there are two types of jobs in OECD countries: low-skilled and skilled jobs. The opening-up of trade between OECD and emerging countries is then positive: to be sure, the equilibrium wage for low-skilled workers in OECD countries is lower , but low-skilled jobs are transformed into skilled jobs in these countries. But in reality, there are three types of jobs in OECD countries: (non-tradeable) services jobs, low-skilled jobs in industry (in the production of tradeable goods) and skilled jobs in industry. Trade opening-up with emerging countries may then lead to both a fall in low-skilled wages in industry and the transformation of low-skilled manufacturing jobs into even lower-skilled services jobs, which would be negative for OECD countries.