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Trade, Education, and Income Inequality

Markus Brueckner, 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

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.

Keywords: non-gravity trade; inequality; education (search for similar items in EconPapers)
JEL-codes: E20 F10 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-mac
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