Purpose – This paper aims to examine the relationship between trade liberalization and wages in India. Design/methodology/approach – This paper uses an empirical approach based on the “mandated wage equations”. Findings – The main result in the paper is that trade reforms have been...

In a two sector extension of the Mortensen–Pissarides model of endogenous job destruction, it is shown that trade liberalization increases both job creation and job destruction in the import competing sector and reduces them in the export sector. Since trade liberalization increases...