Trade, education, and income inequality

Markus Brueckner, Ngo Long and Joaquin Vespignani
Authors registered in the RePEc Author Service: Markus Brueckner

Applied Economics, 2022, vol. 54, issue 40, 4608-4631

Abstract: This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.

Date: 2022
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Related works:
Working Paper: Trade, Education, and Income Inequality (2020)
Working Paper: Trade, Education, and Income Inequality (2020)
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DOI: 10.1080/00036846.2022.2027862

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