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Trade and Wage Inequality in Developing Countries

Author

Listed:
  • Sugata Marjit
  • Hamid Beladi
  • Avik Chakrabarti

Abstract

In this article we provide a theoretical analysis of the possible impact of trade and fragmentation on the skilled--unskilled wage gap in a small developing economy. In particular, we illustrate the possibility of a decline in the relative wage of the unskilled labor following an improvement in the terms of trade. (JEL F1, F11, F12) Copyright 2004, Oxford University Press.

Suggested Citation

  • Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 295-303, April.
  • Handle: RePEc:oup:ecinqu:v:42:y:2004:i:2:p:295-303
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    File URL: http://hdl.handle.net/10.1093/ei/cbh061
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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