Oil trade rents and International Income Inequality

International Trade and Income Inequality∗

We propose a theory that explains why international trade can widen a wage gap between top income-earners and others. In the basic model, we consider two symmetric countries in which individuals with different abilities work either as knowledge workers, who develop products produced in a differentiated-good sector, or as production workers, who engage in actual production processes. In equilibr...

Trade Uncertainty and Income Inequality

Abstract This paper examines the relationship between trade uncertainty and income inequality. In countries where only a small share of the population is educated, an increase in trade uncertainty is associated with a significant increase in income inequality. As education of the population increases the relationship between trade uncertainty and income inequality becomes more muted. Trade unce...

Essays on International Trade and Inequality

Title of Document: ESSAYS ON INTERNATIONAL TRADE AND INEQUALITY Lourenço Senne Paz, Doctor of Philosophy, 2009 Directed By: Professor Nuno Limão Department of Economics In this dissertation I assess the impact of developing country trade liberalization on their wage inequality by focusing on two possible channels, namely job formality and inter-industry wage premium. Informal workers are a larg...

Global economic inequality and international trade

Openness of Trade, Unemployment and Inequality of Income Distribution: Comparison between Developed and Developing Countries

In the discussions of trading, unemployment and income distribution inequality, this question is raised by economists that in economic development of developing and developed countries, which policy is necessary in the first stage. Is trading liberalization the pre-requirement of transfer from a close economy to a relative open economy and is it necessary for the developed economy compared to o...