Inequality and Unemployment in a Global Economy

Elhanan Helpman, Oleg Itskhoki and Stephen Redding

Econometrica, 2010, vol. 78, issue 4, 1239-1283

Abstract: This paper develops a new framework for examining the determinants of wage distributions that emphasizes within-industry reallocation, labor market frictions, and differences in workforce composition across firms. More productive firms pay higher wages and exporting increases the wage paid by a firm with a given productivity. The opening of trade enhances wage inequality and can either raise or reduce unemployment. While wage inequality is higher in a trade equilibrium than in autarky, gradual trade liberalization first increases and later decreases inequality. Copyright 2010 The Econometric Society.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (788)

Downloads: (external link)
http://hdl.handle.net/10.3982/ECTA8640 link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Inequality and Unemployment in a Global Economy (2010)
Working Paper: Inequality and Unemployment in a Global Economy (2009)
Working Paper: Inequality and Unemployment in a Global Economy (2009)
Working Paper: Inequality and unemployment in a global economy (2009)
Working Paper: Inequality and Unemployment in a Global Economy (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:78:y:2010:i:4:p:1239-1283

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().