This paper exploits a quasi-natural experiment – the U.S. granting of Permanent Normal Trade Relations (PNTR) to China after China's accession to the World Trade Organization – to examine whether trade liberalization affects the incidence of child labor in China. PNTR permanently set U.S....

What is the nature of the distributional effects of trade? This paper demonstrates conceptually and empirically the importance of “trade-induced horizontal inequality,” i.e. inequality brought about by trade shocks that occurs among workers with the same level of earnings prior to the shock....

What is the effect of trade liberalization on households in developing countries? To what extent do the poor benefit when local markets are made more accommodative to international trade? I empirically analyze the distributional impact of trade policies on households in a low-income country with...

This paper examines the impact of trade liberalization on the school-work choices in Vietnam from 2002 to 2016 by exploiting the differences in regional exposure from the 2001 U.S-Vietnam Bilateral Trade Agreement (BTA). Using eight waves of the Vietnam Household Living Standard Surveys, I found...

In a heterogeneous-firm model with oligopsonistic local labor markets, this paper shows that opening up to trade can affect distortion in such markets. The distortion arises because firms are large and able to exercise market power over their local workers. Using a panel dataset of Chinese...

We formalize the GATT/WTO principle of reciprocity in workhorse quantitative trade models, characterizing reciprocal tariff cuts that hold terms of trade fixed and investigating their labor-market impacts. We provide closed-form expressions mapping reciprocal tariff cuts to labor market...

This paper presents a review of the theoretical and empirical literature on the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased wage inequality in several developing countries.

This paper presents a review of the theoretical and empirical literature on the effects of trade liberalization on the labor markets of developing countries. We discuss models which seek to explain the empirical finding that openness has increased wage inequality in several developing countries.