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Trade Uncertainty and Income Inequality

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  • Markus Brueckner
  • Joaquin Vespignani

Abstract

This paper examines the relationship between trade uncertainty and income inequality. In countries where only a small share of the population is educated, an increase in trade uncertainty is associated with a significant increase in income inequality. As education of the population increases the relationship between trade uncertainty and income inequality becomes more muted. Trade uncertainty has no significant effect on income inequality in countries that are world leaders in education. Developing countries that want to reduce income inequality arising from trade uncertainty should therefore consider further improving their education system.

Suggested Citation

  • Markus Brueckner & Joaquin Vespignani, 2017. "Trade Uncertainty and Income Inequality," ANU Working Papers in Economics and Econometrics 2017-648, Australian National University, College of Business and Economics, School of Economics.
  • Handle: RePEc:acb:cbeeco:2017-648
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp648.pdf
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    Cited by:

    1. Tian, Jilin & Sim, Nicholas & Yan, Wenshou & Li, Yanyun, 2020. "Trade uncertainty, income, and democracy," Economic Modelling, Elsevier, vol. 90(C), pages 21-31.

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    More about this item

    Keywords

    Trade Uncertainty; Inequality; Education;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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