Trade, Education, and Income Inequality
Ngo Van Long,
Joaquin Vespignani () and
Ngo Van Long
Authors registered in the RePEc Author Service: Markus Brueckner () and
Ngo Van Long
No 8370, CESifo Working Paper Series from CESifo
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.
Keywords: non-gravity trade; inequality; education (search for similar items in EconPapers)
JEL-codes: E20 F10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
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Working Paper: Trade, Education, and Income Inequality (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8370
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