How does a redistribution of trade gains affect welfare when income inequality matters? To answer this question, we … extend the [1] model to unionized labor markets and heterogeneous workers. As redistribution schemes, we consider … redistribution scheme is to finance unemployment benefits by a wage tax. …

undermine the political viability of free trade. We show that trade-related redistribution increases the political viability of … free trade in the US. We do so by assessing the causal effect of expected redistribution associated with the US Trade …. We find that a one standard deviation increase in redistribution leads to more than a 3% point increase in the …