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Trade, GVCs, and wage inequality: Theoretical and empirical insights

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  • Nicola Gagliardi
  • Benoit Mahy
  • François Rycx

Abstract

A prominent issue in current debates is the coincidence between growing within-country disparities in the labor income distribution and countries' increasing exposure to globalization. This article contributes to such discussions by providing an overview of the main theoretical and empirical literature on the link between globalization and a component of income inequality: wage inequality. Specific attention is paid to the role of trade, in the form of exports and imports, and global value chains (GVCs). This review emphasizes that in-depth consideration of several intertwined mechanisms is necessary in order to accurately address trade-induced inequality concerns.

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  • Nicola Gagliardi & Benoit Mahy & François Rycx, 2020. "Trade, GVCs, and wage inequality: Theoretical and empirical insights," ULB Institutional Repository 2013/313994, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/313994
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    1. Nicola Gagliardi & Benoît Mahy & François Rycx, 2020. "Trade, GVCs, and wage inequality: Theoretical and empirical insights," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 115-134.

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