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Wage inequality in trade-in-tasks models

Hugo Rojas-Romagosa ()

CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: Recent trade-in-tasks models suggest that relative low-skill wages may increase when low-skill tasks are offshored. However, using extensive numerical simulations of these models we find that wage inequality is increasing for almost all endowment combinations when we use a broad range of parameter values and model specifications.

JEL-codes: F11 F16 J31 (search for similar items in EconPapers)
Date: 2011-12
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