Successive Trade Liberalization and Wage Inequality
AbstractThis paper examines the implications of initial conditions in terms of the levels of tariff protection from which countries liberalize their trade regimes on the wage inequality in trading nations. The discussion is confined to the standard two-country Heckscher-Ohlin-Samuelson model to see whether there can be channels, other than those discussed in the recent literature, through which the observed phenomena can be theoretically predicted. The initial conditions are observed to matter in the sense that for countries lowering their tariff levels successively than once and for all, intra-country wage inequality may change asymmetrically at different stages of liberalization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30158.
Date of creation: 2010
Date of revision:
Successive tariff reductions; Wage Inequality; Heckscher-Ohlin Model; Bilateral trade liberalization; Metzler paradox;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
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