Is there really no link between international trade and wage differentials? A cross-country analysis
This paper investigates empirically the relationship between international trade (in particular with non-OECD countries) and wage differentials of workers with different skills. We examine years from 1996 and 2005 in several countries and, whereas past studies (conducted on previous years) had not detected any relevant relationship, we find a clean cut positive effect of imports from non-OECD countries on differentials. In addition, we find evidence that technological change is having a polarization effect on wages.
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