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Trade, education, and income inequality

Author

Listed:
  • Markus Brueckner
  • Ngo Van Long
  • Joaquin Vespignani

Abstract

This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.

Suggested Citation

  • Markus Brueckner & Ngo Van Long & Joaquin Vespignani, 2022. "Trade, education, and income inequality," Applied Economics, Taylor & Francis Journals, vol. 54(40), pages 4608-4631, August.
    • Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4608-4631
    DOI: 10.1080/00036846.2022.2027862
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    Cited by:

    1. David Bounie & Youssouf Camara & John W. Galbraith, 2021. "Consumer Mobility, Online and On-site Commerce and the Geographic Concentration of Economic Activity: Evidence from 20 Billion Transactions," CIRANO Working Papers 2021s-17, CIRANO.
    2. Zhao, Xiyang & Yang, Xi & Tian, Jilin & Yan, Wenshou, 2025. "Does trade uncertainty matter for the composition of energy consumption?," International Review of Economics & Finance, Elsevier, vol. 102(C).

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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