Trade and wage inequality, mirage or reality?

In the 2X2X2 Heckscher-Ohlin model there exists a one to one relation between relative good prices and relative factor prices. A change in the relative price of one good changes the relative price of the factor used intensively in the production of the good in the same direction. We review this relation in the context of an analysis of European wage inequality. During the 1980-2000 period wage inequality in Europe increased. However, this movement is not explained by changes in wage differentials by skill level. The education and experience wage premiums remained relatively constant over the sample period. The largest fraction of the increase in wage inequality is accounted by residual inequality.

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Year of publication:	2010
Authors:	Tomat, Gian Maria
Publisher:	Luxembourg : Luxembourg Income Study (LIS)
Subject:	Lohnstruktur \| Produktdifferenzierung \| Intraindustrieller Handel \| Außenhandel mit Industriegütern \| EU-Staaten \| Inter-industry Trade \| Intra-industry Trade \| Product Differentiation \| Wage Inequality

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Series:	LIS Working Paper Series ; 533
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	638263875 [GVK] hdl:10419/95463 [Handle]
Classification:	D31 - Personal Income, Wealth and Their Distributions ; F16 - Trade and Labor Market Interactions ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	EconStor

Persistent link: https://www.econbiz.de/10010335449