Income Inequality and Trade: How to Think, What to Conclude

J. David Richardson

Journal of Economic Perspectives, 1995, vol. 9, issue 3, 33-55

Abstract: Recent econometric work and growing analytical consensus suggest that exogenous international market pressures are a contributing factor to trends in U.S. wage/earnings inequality. Trade accounts for a share of these inequality trends close to or somewhat greater than its 10-15 percent share of economic activity, especially over medium-term horizons and dependent on precise definition. Trade is neither a trivial influence nor a dominant one. Evidence exists that its influence has declined slightly in the past decade, however. Rapid technological growth in exportable sectors seems more important.

JEL-codes: F14 J21 J31 (search for similar items in EconPapers)
Date: 1995
Note: DOI: 10.1257/jep.9.3.33
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Citations: View citations in EconPapers (185)

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