Acharyya, Rajat (2010): Successive Trade Liberalization and Wage Inequality. Published in: Keio Economic Studies , Vol. 46, (2010): pp. 29-42.
Download (2MB) | Preview
This paper examines the implications of initial conditions in terms of the levels of tariff protection from which countries liberalize their trade regimes on the wage inequality in trading nations. The discussion is confined to the standard two-country Heckscher-Ohlin-Samuelson model to see whether there can be channels, other than those discussed in the recent literature, through which the observed phenomena can be theoretically predicted. The initial conditions are observed to matter in the sense that for countries lowering their tariff levels successively than once and for all, intra-country wage inequality may change asymmetrically at different stages of liberalization.
|Item Type:||MPRA Paper|
|Original Title:||Successive Trade Liberalization and Wage Inequality|
|English Title:||Successive Trade Liberalization and Wage Inequality|
|Keywords:||Successive tariff reductions; Wage Inequality; Heckscher-Ohlin Model; Bilateral trade liberalization; Metzler paradox|
|Subjects:||F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
|Depositing User:||Rajat Acharyya|
|Date Deposited:||06. Dec 2012 13:49|
|Last Modified:||03. May 2015 22:50|
Chakraborty, B.S. and A. Sarkar, 2007, “Trade, Wage Inequality and the Vent for Surplus”, Mimeo, Indian Statistical Institute, Calcutta. Chakraborty, B.S. and A. Sarkar, 2009, “Trade and wage inequality with endogenous skill formation”. Paper presented at the International Conference on Globalization, Agglomeration and Inclusive Growth”, Jadavpur University, May 21-22, 2009. Davis, D., 1996, “Trade liberalization and income distribution”, NBER Working Paper No. 5693. Deardorff, A., 2000, “Factor Prices and the Factor Content of Trade Revisited: What's the Use?”, Journal of International Economics 50, 73-90. Dogan, C. (2008). Three Essays on Trade, Distribution, and Tariffs. Ph. D. dissertation, The University of Houston. Feenstra, R., and G. Hanson, 1996, “Foreign Investment, Outsourcing and Relative Wages”. In: R. Feenstra, G. Grossman and D. Irwin, eds, Political Economy of Trade Policies. Essays in Honour of J.N. Bhagwati, MIT Press, MA. Jones, R.W. and S.L. Engerman, 1996, “Trade, Technology and Wages. A Tale of Two Countries”, American Economic Review, 86: 35-40. Keynes, J.M, 1929, “The German transfer problem”, Economic Journal, 39: 1-7. Krugman, P.R., 2000, “Technology, Trade and Factor Prices”, Journal of International Economics, 50: 51-71. Kumar, A, 1999, ‘The Black Economy: Missing Dimension of Macro Policy-Making in India’, Economic and Political Weekly, March 20-26.
Leamer, E., 1995, “A Trade Economists's View of US Wages and Globalization”. In: S. M. Collins, eds., Imports, Exports and the American Worker, Brookings Institution Press, Washington DC. Leamer, E., 2000, “What's the Use of Factor Contents?”, Journal of International Economics, 50: 51-71. Marjit, S. and R. Acharyya, 2003, “International Trade, Wage Inequality and the Developing Economy: A General Equilibrium Approach”, hysica/Springer Verlag: Heidelberg. Marjit, S. and R. Acharyya, 2006, "Trade liberalization, skill-linked intermediate and two-sided wage-gap", Journal of Policy Reform, 9(3): 303-317, 2006. Metzler, L., 1949, “Tariffs, the terms of trade, and the distribution of national income”, Journal of Political Economy, 57:1-29. Ohlin, B., 1929, “The reparation problem: A discussion”, Economic Journal, 39: 172-173. Ruffin, R. J., 2003, Oligopoly and Trade: What, How Much, and For Whom? Journal of International Economics 60, 315-335. Ruffin, R. J., 2009, Monopolistic Competition, Princeton Encyclopedia of World Economy, ed: K. Reinert, Princeton University Press. Sanyal, K, 1983, “Vertical specialization in a Ricardian model with continuum of stages of production”, Economica, 50: 70-88. Xu, B., 2003, “Trade Liberalization, Wage Inequality and Endogemeously determined Non-Traded Goods”, Journal of International Economics, 60(2) 417-431. Yabuuchi, S., and S. Chaudhuri, 2009, “Skill formation, capital adjustment cost and wage inequality”, RURDS, 21(1):2-13. Zhu, S and D. Trefler, 2005, “Trade and Inequality in Developing Countries: A General Equilibrium Analysis”, Journal of International Economics, January, 21-48.