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Is there really no link between international trade and wage differentials? A cross-country analysis

Author

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  • Lorenzo Corsini

Abstract

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.

Suggested Citation

  • Lorenzo Corsini, 2011. "Is there really no link between international trade and wage differentials? A cross-country analysis," Discussion Papers 2011/118, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2011/118
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2011-118.pdf
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    Cited by:

    1. Hatsor, Limor, 2012. "Occupational choice: Teacher quality versus teacher quantity," Labour Economics, Elsevier, vol. 19(4), pages 608-623.

    More about this item

    Keywords

    International Trade; Wage Differentials; Skills.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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