This copy is for your personal, noncommercial use only. You can order presentation-ready copies for distribution toyour colleagues, clients or customers here or use the "Reprints" tool that appears next to any article. Visitwww.nytreprints.com for samples and additional information. Order a reprint of this article now.November 11, 2009BREAKINGVIEWS.COMBy EDWARD HADAS, MARTIN HUTCHINSON and ANTONY CURRIEAmerican workers are overpaid, relative to equally productive employees elsewhere doing the same work.If the global economy is to get into balance, that gap must close.Of course, workers in the United States should earn more than their peers in China, Moldova or Vietnam.Americans take advantage of the higher productivity that makes their country rich: better education andinfrastructure, abundant capital and a strong work ethic. But how much higher should American wages be?The answer depends in large part on two measures: the difference in productivity in making goods that canbe traded across borders, and the quantity of such goods. Both measures point to a narrowing wage gap.
This is the end of the preview.
access the rest of the document.