this study examins effects of trade liberalization on the wage inequality across industries and between genders within these industries by utilizing the data of micro-level households’ income and expenditures surveys and trade statistics over 2001-2011. the analysis is carried based on the heckscher–ohlin’s theory in international trade and baker’s taste discrimination theory at firms. we use q...

Abstract—This paper uses a primary data from 670 Chinese manufacturing firms, together with the newly introduced regressionbased inequality decomposition method, to study the effect of openness on wage inequality. We find that openness leads to a positive industry wage premium, but its contribution to firm-level wage inequality is relatively small, only 4.69%. The major contributor to wage ineq...

The recent rise in wage inequality is usually attributed to skill-biased technical change (SBTC), associated with new computer technologies. We review the evidence for this hypothesis, focusing on the implications of SBTC for overall wage inequality and for changes in wage differentials between groups. A key problem for the SBTC hypothesis is that wage inequality stabilized in the 1990s despite...

globalization may have different impacts on the gender wage gap depending on the specialization and trade pattern as well as the socio-economic situation. the main purpose of this paper is to examine an impact of globalization on gender wage inequality. specifically, the hypothesis is that globalization reduces gender wage gap. for this, we have employed a panel technique for 21 selected develo...

Rising Wage Inequality, the Decline of Collective Bargaining, and the Gender Wage Gap This paper investigates the increase in wage inequality, the decline in collective bargaining, and the development of the gender wage gap in West Germany between 2001 and 2006. Based on detailed linked employer-employee data, we show that wage inequality is rising strongly – driven not only by real wage increa...

The Effects of the State Sector on Wage Inequality in Urban China: 1988–2007 This paper examines the effects of state sector domination on wage inequality in urban China. Using Chinese Household Income Project surveys, we conduct two exercises: with quantile regression analysis, we identify wage gaps across the distribution and over time; and we employ the Machado and Mata (2005) decomposition ...

China experienced a sharp increase in wage inequality between unskilled and skilled workers in the late 1990s. Using a sample of 1,500 firms in five Chinese cities with available data for 1998 and 2000, we investigate the role of technology and foreign trade in determining China’s wage inequality. We find evidence that conditional on the technology deployed, trade reduces wage inequality in exp...

Institutions, Markets and Men’s and Women’s Wage Inequality: Evidence from Ukraine ∗ Ukraine, the second largest country in the former Soviet bloc, is facing the challenge of rallying popular support for major structural reforms. As in most developing economies, the “Orange Revolution” government’s success will depend on its ability to keep income distribution within an acceptable range. This p...

A New Model of Wage Determination and Wage Inequality This paper proposes a new model of wage determination and wage inequality. In this model, wage-setters set workers’ wages; they do so either directly, as when individuals vote in a salary committee, or indirectly, as when political parties, via the myriad of social, economic, fiscal, and other policies, generate wages. The recommendations ma...