EconPapers    
Economics at your fingertips  
 

Skilled-Unskilled Wage Asymmetries as an Outcome of Skewed International Trade Patterns in the South

Dawood Mamoon

MPRA Paper from University Library of Munich, Germany

Abstract: The paper tries to find out the impact of trade liberalization on income inequality. The literature suggests that trade favors one segment of the society over other and cause uneven development. For example, one possible way through which inequality is suspected to seep into the economy through processes of liberalization is by increasing the relative wages of skilled labor as compared to the unskilled ones. Empirical evidence is provided to this effect by employing Theil Wage inequality Index and up to 28 different concepts of openness/ trade policy. OLS as well as 2SLS regressions with numerous specifications were run. It is found out that openness not only causes wage inequality but the relationship is significant for the developing countries. Additionally, the study also suggests that human capital, which is accrued from liberalization processes, is responsible for amplifying wage inequality.

Keywords: International Trade; Education; Labor Markets (search for similar items in EconPapers)
JEL-codes: F16 F62 F66 J23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-lma
Date: 2017-11-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/82449/1/MPRA_paper_82449.pdf original version (application/pdf)

Related works:
Journal Article: Skilled-unskilled wage asymmetries as an outcome of skewed international trade patterns in the South (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82449

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-05-11
Handle: RePEc:pra:mprapa:82449