We study, both theoretically and empirically, how trade imbalances affect the structure of countries’ exports and wage inequality. We show that, in a Heckscher–Ohlin model with a continuum of goods, a Southern (Northern) trade surplus leads to an increase (reduction) in the average skill intensity of exports, in the relative demand for skills and in the skill premium in both countries. We provide robust support for the mechanism underlying these predictions using a large panel of countries observed over the past 30 years. Our results suggest that the large and growing North–South trade imbalances arisen over the last three decades may have exacerbated wage inequality worldwide.
(2014). Trade Imbalances, Export Structure, and Wage Inequality [journal article - articolo]. In ECONOMIC JOURNAL. Retrieved from http://hdl.handle.net/10446/192154
Trade Imbalances, Export Structure, and Wage Inequality
Crino', Rosario;
2014-01-01
Abstract
We study, both theoretically and empirically, how trade imbalances affect the structure of countries’ exports and wage inequality. We show that, in a Heckscher–Ohlin model with a continuum of goods, a Southern (Northern) trade surplus leads to an increase (reduction) in the average skill intensity of exports, in the relative demand for skills and in the skill premium in both countries. We provide robust support for the mechanism underlying these predictions using a large panel of countries observed over the past 30 years. Our results suggest that the large and growing North–South trade imbalances arisen over the last three decades may have exacerbated wage inequality worldwide.File | Dimensione del file | Formato | |
---|---|---|---|
Published.pdf
Solo gestori di archivio
Versione:
publisher's version - versione editoriale
Licenza:
Licenza default Aisberg
Dimensione del file
473.43 kB
Formato
Adobe PDF
|
473.43 kB | Adobe PDF | Visualizza/Apri |
Pubblicazioni consigliate
Aisberg ©2008 Servizi bibliotecari, Università degli studi di Bergamo | Terms of use/Condizioni di utilizzo