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Is there really no link between international trade and wage differentials?

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  • Lorenzo Corsini

Abstract

This article investigates empirically the relationship between international trade (in particular with non-OECD countries) and wage differentials of workers with different skills. We examine years from 1996 to 2005 in several countries and, whereas past studies (using data from previous years) had not detected any relevant relationship, we find a clean-cut positive effect of imports from non-OECD countries on differentials. In addition, we find evidence that technological change is having a polarization effect on wages.

Suggested Citation

  • Lorenzo Corsini, 2013. "Is there really no link between international trade and wage differentials?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(6), pages 559-565, April.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:6:p:559-565
    DOI: 10.1080/13504851.2012.720007
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    1. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
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    8. Robert Z. Lawrence, 2008. "Blue-Collar Blues: Is Trade to Blame for Rising US Income Inequality?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa85.
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