Has international trade disfavoured unskilled workers?

In this paper we analyse whether the increase in international trade has hurt unskilled workers in comparison with skilled workers in the Danish labour market. First, we look explicitly at the textile industry; and second, we apply a very specific method which assumes that the Heckscher-Ohlin model is the "correct" model to use as the basis for an empirical analysis. With many reservations, it can be stated that our results indicate that unskilled workers seem to have lost ground relative to skilled workers. Our results also indicate that the Danish labour market is not sufficiently flexible to avoid unemployment problems arising as a result of more international trade.