We develop a quantitative general equilibrium model to examine the impact of multinational production on the within-country wage gap between skilled and unskilled workers. The model predictions are consistent with salient features of multinational firms in the data. Counterfactuals of a...

The observation of an increase in the ratio of skilled to unskilled wages in the high-income countries and in some cases in low/middle income countries has led to considerable discussion and indeed controversy as to its cause. Virtually none of the analysis has considered a possible role of...