We conduct an economy-wide analysis of the association between trade and wages in New Zealand and decompose the influence of imports on relative wages by sector and region. We find that increased imports resulted in a small increase in wage inequality but this rise was offset by downward...

The phenomenon of rising wage inequality has been extensively documented in OECD countries. In the final quarter of the last century it appears to have been particularly marked in the US and UK. The drivers of rising inequality have been subject to econometric analysis and the relative roles of...