Marjit, Sugata; Achryya, Rajat - East Asian Bureau of Economic Research (EABER) - 2005
An interesting contemporary research question in trade theory deals with the possibility of rising wage inequality … proof of the phenomenon by arguing that liberalizing trade in skill-linked intermediate product is likely to increase … skilled-unskilled wage gap across the globe. Our model has the feature that a trade-induced shock can reduce the price of the …