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Is there really no link between international trade and wage differentials?

Lorenzo Corsini ()

Applied Economics Letters, 2013, vol. 20, issue 6, 559-565

Abstract: This article investigates empirically the relationship between international trade (in particular with non-OECD countries) and wage differentials of workers with different skills. We examine years from 1996 to 2005 in several countries and, whereas past studies (using data from previous years) had not detected any relevant relationship, we find a clean-cut positive effect of imports from non-OECD countries on differentials. In addition, we find evidence that technological change is having a polarization effect on wages.

Date: 2013
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DOI: 10.1080/13504851.2012.720007

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Handle: RePEc:taf:apeclt:v:20:y:2013:i:6:p:559-565