Trade and Rising Wage Inequality: What can we learn from a Decade of Computable General Equilibrium Analysis?

Niven Winchester

No 606, Working Papers from University of Otago, Department of Economics

Abstract: This paper surveys computable general equilibrium (CGE) contributions to trade-wage debate. We conclude that this literature provides an avalanche of support for the view that trade has had only a minor influence on wage inequality through Heckscher-Ohlin channels. Moreover, some studies show that trade may be associated with declining wage inequality and/or reveal that North-North trade is responsible for a greater proportion of the increase in Northern wage inequality than North-South trade. The impact of trade-induced technical change, however, has received little attention in the CGE literature.

Keywords: computable general equilibrium modeling; trade and wages (search for similar items in EconPapers)
JEL-codes: C68 F16 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2006-10, Revised 2006-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Chapter: Trade and Rising Wage Inequality: What Can We Learn from a Decade of Computable General Equilibrium Analysis? (2008)
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