How Large is the Impact of Trade on Inequality? A New Factor Content of Trade Approach

Rodrigo Adao, Arnaud Costinot, Dave Donaldson, Dina Pomeranz and Paul Carrillo
Additional contact information
Rodrigo Adao: University of Chicago Booth School of Business
Dave Donaldson: MIT

No 960, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: How are relative earnings across individuals (such as an economy’s collection of workers and firm owners) affected by openness to international trade? Extending the insights of Deardorff and Staiger (1988) to an arbitrary neoclassical economy, we develop a new theoretical framework for answering this question as a function of each individual’s factor content of trade and the economy’s factor demand system. We use a unique merged dataset (drawing on firm-to-firm transaction data, employer-employee matched data, owner-firm matched data, and firm-level customs transaction records) in order to measure the factor content of trade for each formal sector individual in Ecuador and to estimate the factor demand system for that country.

Date: 2019
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2019/paper_960.pdf (application/pdf)

Related works:
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:red:sed019:960

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().