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DOES TRADE IN INTERMEDIATE GOODS INCREASE OR DECREASE WAGE INEQUALITY?

April 26, 2017increase inequality Intermediate Trade Wage

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DOES TRADE IN INTERMEDIATE GOODS INCREASE OR DECREASE WAGE INEQUALITY?

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) and Dingsheng Zhang The Singapore Economic Review (SER), 2007, vol. 52, issue 02, pages 201-213 Abstract: This paper develops two models to study the impact of trade in intermediate goods on wage inequality between skilled and unskilled labor in a developed country and a developing country. The first model assumes symmetric production technologies in the intermediate good. It predicts that trade in the intermediate good will increase wage inequality in the developed country, but decrease wage inequality in the developing country. The second model assumes asymmetric technologies in the intermediate good. It predicts that trade in the intermediate good can lead to an increase in wage inequality in both the developed country and the developing country. Keywords: Wage inequality; outsourcing; developing countries (search for similar items in EconPapers) Date: 2007 Track citations by RSS feed Downloads: (external link) http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S021759