Dorn, Florian; Fuest, Clemens; Potrafke, Niklas - In: Economic Inquiry 60 (2021) 1, pp. 202-223
We examine how trade openness influences income inequality within countries. The sample includes 139 countries over the … period 1970–2014. We employ predicted openness as instrument to deal with the endogeneity of trade openness. The effect of … trade openness on income inequality differs across countries. Trade openness tends to disproportionately benefit the …