The paper builds an argument that international trade can be one explanation behind polarization of employment in the labor market observed in developed countries such as U.K. and U.S. It considers a small open economy, having production sectors which use three types of labor: high-skill,...

The paper builds an argument that international trade can be an explanation behind polarization of employment in the labor market observed in developed countries such as UK and US It considers a small open economy, having production sectors which use three types of labor: high-skill,...

The link between trade among similar countries and personal distribution of income and wealth is explored, with heterogeneous savings rates among households (dynasties) being the source of inequality. The real effect of trade occurs through greater oligopolistic competition and scale economies....

The effects of trade among similar countries and that among dissimilar countries on the relative wage are examined. Product quality is a choice variable by firms. Quantity production is assumed to satisfy constant costs, while quality production is more skilled-labor intensive than quantity...

The paper builds an argument that international trade can be one explanation behind polarization of employment in the labor market observed in developed countries such as U.K. and U.S. It considers a small open economy, having production sectors which use three types of labor: high-skill,...

The paper builds an argument that international trade can be an explanation behind polarization of employment in the labor market observed in developed countries such as UK and US It considers a small open economy, having production sectors which use three types of labor: high-skill,...