Rosario Crinó y Paolo Epifaniz, Presentado en el Seminario del Dpto. de Economía, UC3M, mayo 2013
Viernes 17 de mayo de 2013, por Carlos San Juan
We study, both theoretically and empirically, how trade imbalances a§ect wage inequality. We show that, in a Heckscher-Ohlin model with a continuum of goods, a Southern (Northern) trade surplus leads to an increase (reduction) in the average skill intensity of exports, in the relative demand for skills and in the skill premium in both countries. We provide robust evidence in support of these predictions using a large panel of countries and a panel of US manufacturing industries observed over the past three decades. Our results suggest that the large and growing North-South trade imbalances arisen over the last three decades may have exacerbated wage inequality worldwide.
JEL Classication: F1; Keywords: North-South Trade Imbalances; Average Skill Intensity of Exports; Skill Upgrading; Skill Premia.
Centro de Estudios Monetarios y Financieros (CEMFI), Casado del Alisal 5, 28014, Madrid (Spain). E-mail: crino@cemÖ.es.
Department of Economics, IGIER and P. Ba¢ Centre, Universit‡ Bocconi, Via Rˆntgen 1, 20136 Milan (Italy). E-mail: email@example.com.