Conventional trade theory, which combines the Heckscher-Ohlin theory and the Stolper-Samuelson theorem, implies that … expanded trade between developed and developing countries will increase wage inequality in the developed countries. This theory … conventional theory to the assumption of incomplete specialization and find evidence that is not consistent with it. Since 1987 …

Conventional trade theory, which combines the Heckscher-Ohlin theory and the Stolper-Samuelson theorem, implies that … expanded trade between developed and developing countries will increase wage equality in the former. This theory is widely … theory to the assumption of incomplete specialization and find evidence that is not consistent with it. Since 1987, although …