Free Trade and Wage Inequality in an Advanced Economy

Yong-Yil Choi ()

Open Economies Review, 1998, vol. 9, issue 4, 349-359

Abstract: This paper develops a formal model for examining the impact of free trade on the wage inequality in the Northern economy and the sensitivity of wage inequality indices to changes in causal factors within a general equilibrium setting. The model has three types of labor: sector-specific high-skilled, mobile unskilled and immobile unskilled labor. Thus, three types of wage inequality indices are derived. Selected comparative statics for changes in consumer expenditure shares, biased technological changes, changes in relative endowments are provided. Copyright Kluwer Academic Publishers 1998

Keywords: free trade; wage inequality indices; differentiated intermediate goods (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:9:y:1998:i:4:p:349-359

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DOI: 10.1023/A:1008317515602

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