Foreign Competition, Market Power, and Wage Inequality
This paper investigates the link between the trend in the returns to education and foreign competition in concentrated industries. The authors argue that the impact of foreign competition on the relative wages of less skilled workers depends on the market structure of the industry penetrated. The empirical evidence indicates that employment changes in a small group of trade-impacted concentrated industries can explain not only part of the aggregate rise in wage inequality in the United States but also some of the differences in the trends in wage inequality across metropolitan areas. Copyright 1995, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Volume (Year): 110 (1995)
Issue (Month): 4 (November)
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