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Unequal skill premiums and trade liberalization: Is education the missing link?

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  • Mamoon, Dawood
  • Murshed, S. Mansoob

Abstract

We examine the impact of increased trade on wage inequality in developing countries; whether higher human capital stocks moderate this effect. We find countries with a higher level of initial human capital experience less increased wage inequality following increased trade.

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  • Mamoon, Dawood & Murshed, S. Mansoob, 2008. "Unequal skill premiums and trade liberalization: Is education the missing link?," Economics Letters, Elsevier, vol. 100(2), pages 262-266, August.
  • Handle: RePEc:eee:ecolet:v:100:y:2008:i:2:p:262-266
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    References listed on IDEAS

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    1. Jorge Saba Arbache & Andy Dickerson & Francis Green, 2004. "Trade Liberalisation and Wages in Developing Countries," Economic Journal, Royal Economic Society, vol. 114(493), pages 73-96, February.
    2. Rose, Andrew K., 2004. "Do WTO members have more liberal trade policy?," Journal of International Economics, Elsevier, vol. 63(2), pages 209-235, July.
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    8. Pinelopi K. Goldberg & Nina Pavcnik, 2004. "Trade, Inequality, and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries," NBER Working Papers 10593, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Rossana Patron & Marcel Vaillant, 2012. "Can Education Policy Address The Wage Gap? A Note On Public Skill Formation In Developing Countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(3), pages 369-378, April.
    2. Zhang, Jingjing, 2015. "International factor mobility, elasticity of substitution in production and the skilled–unskilled wage gap," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 122-129.
    3. Edinaldo Tebaldi & Jongsung Kim, 2010. "Two Tales on the Returns to Education: The Impact of Trade on Wages," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 768-782, November.
    4. Dawood MAMOON, 2018. "Globalization, political orientation and wage inequality: From Donald Trump’s election to Angela Merkal’s re-election," Turkish Economic Review, KSP Journals, vol. 5(1), pages 12-21, March.
    5. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    6. Mamoon, Dawood, 2017. "Governance over Economics: Making Globalisation Good for the Poor," MPRA Paper 82910, University Library of Munich, Germany.
    7. Mamoon, Dawood, 2017. "Why International Trade Cause Inequality in Developing Countries," MPRA Paper 82268, University Library of Munich, Germany.

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