The Skill Bias of World Trade

Paolo Epifani () and Gino Gancia

No 184, Working Papers from Barcelona School of Economics

Abstract: Under plausible assumptions about preferences and technology, the model in this paper suggests that the entire volume of world trade matters for wage inequality. Therefore, trade integration, even among identical countries, is likely to increase the skill premium. Further, we argue that empirical evidence of a falling relative price of skill-intensive goods can be reconciled with the fast growth of world trade and that the intersectoral mobility of capital exacerbates the effect of trade on inequality. We provide new empirical evidence in support of our results and a quantitative assessment of the skill bias of world trade.

Keywords: Skill Premium; Scale Effect; Intra-Industry; Inter-Industry Trade (search for similar items in EconPapers)
JEL-codes: F12 F16 (search for similar items in EconPapers)
Date: 2015-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Skill Bias of World Trade (2008)
Journal Article: The Skill Bias of World Trade (2008)
Working Paper: The skill bias of world trade (2007)
Working Paper: The Skill Bias of World Trade (2002)
Working Paper: The Skill Bias of World Trade (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:184

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