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 unemployment benefits that are financed either by a wage tax, a...

We examine the role of trade liberalization in accounting for increasing wage inequality in the Philippines from 1994 to 2000 - a period over which trade protection declined and inequality increased dramatically. Using the approach of Ferreira, Leite, and Wai-Poi (2007), we find that...

This paper attempts to analyze the fact that is trade liberalization reducing poverty and income inequality in Pakistan using empirical evidence from time series data analysis. The issue of trade liberalization and its effects on the developing economies has become the hotly debated subject in...

We develop a dynamic general equilibrium trade model with comparative advantage, heterogeneous firms, heterogeneous workers and endogenous firm entry to study wage inequality during the adjustment after trade liberalization. We find that trade liberalization increases wage inequality both in the...

Data from the World Bank shows that in the 21st century, over 100 million Africans have become poor and about 43% of the African population is extremely poor. Notwithstanding, African governments have over the years liberalized their economies through a low tariff regime, in addition to external...

This paper investigates the long-term impact of economic shocks on populism, by exploiting a natural experiment created by the trade liberalization process implemented in Brazil between 1990 and 1995. This high impact and low duration event generated a profound shock to the economy with, we...