Market size and wages

Yiming Zhou

Economics Letters, 2019, vol. 174, issue C, 153-156

Abstract: This paper builds a simple three-country model with different market sizes and non-constant wages. We shed light on the evolution patterns of wages in middle-sized countries in the process of trade liberalization. We analytically disclose that, while the wage inequality between the large and the small countries first diverges and then converges in trade liberalization, the evolution patterns of wages in the middle-sized country are largely diversified, depending on the relative market sizes of countries.

Keywords: Market size; Wages; Middle-sized country (search for similar items in EconPapers)
JEL-codes: F12 F15 F16 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:174:y:2019:i:c:p:153-156

DOI: 10.1016/j.econlet.2018.11.015

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