We examine how trade openness influences income inequality within countries. The sample includes 139 countries over the … trade openness on income inequality differs across countries. Trade openness tends to disproportionately benefit the … economies, trade openness increased income inequality, an effect that is driven by outliers. Our results suggest a strong effect …

population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As … education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non …-gravity trade has no significant effect on income inequality in countries that are world leaders in education. …