DOES TRADE IN INTERMEDIATE GOODS INCREASE OR DECREASE WAGE INEQUALITY?
Published in The Singapore Economic Review • Jul 24, 2007
NobleIDNI3P22W61R67S54
Authors:,
Wenli Cheng
Dingsheng Zhang
Abstract
This paper develops two models to study the impact of trade in intermediate goods on wage inequality between skilled and unskilled labor in a developed country and a developing country. The first model assumes symmetric production technologies in the intermediate good. It predicts that trade in the ...
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