Vertical intra-industry trade and skill intensity in Europe: a cross sector analysis

The impact of international trade on the labour market is a topic of growing interest among economists. In the last two decades income distribution has strongly changed in the USA with a progressive increase in the difference between the wages of skilled and unskilled workers. Even though West European contries have not showed such a dramatic change in income differential (except the UK), they have exhibited high rates of unemployment especially among less skilled workers.