Arindrajit, Dube; Reddy Sanjay G. - In: Journal of Globalization and Development 4 (2014) 2, pp. 213-252
We present a model of the effect of heightened product market competition induced by trade liberalization on the distribution of income between profits and wages. Integration increases the employment cost of wage demands, thereby decreasing bargained wages and the share of rents accruing to...