Trade and Wage Inequality in Developing Countries

Authors: Marjit S.; Beladi H.; Chakrabarti A.

Source: Economic Inquiry, Volume 42, Number 2, April 2004 , pp. 295-303(9)

Publisher: Oxford University Press

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Abstract:

In this article we provide a theoretical analysis of the possible impact of trade and fragmentation on the skilled–unskilled wage gap in a small developing economy. In particular, we illustrate the possibility of a decline in the relative wage of the unskilled labor following an improvement in the terms of trade. (JEL F1, F11, F12)

Document Type: Research article

DOI: 10.1093/ei/cbh061

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