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GTAP Resource #2236 |
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"Trade and rising wage inequality: What can we learn from a decade of computable general equilibrium analysis?" by Winchester, Niven Abstract This paper surveys computable general equilibrium (CGE) contributions to the trade-wage debate. We conclude that this literature provides an avalanche of support for the view that trade has had only a minor influence on wage inequality through Heckscher-Ohlin channels. Moreover, some studies show that trade may be associated with declining wage inequality and/or reveal that North-North trade is responsible for a greater proportion of the increase in Northern wage inequality than North-South trade. The impact of trade-induced technical change, however, has received little attention in the CGE literature. JEL classification: C68, F16 Keywords: computable general equilibrium modeling, trade and wages |
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- Labor market issues |
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Last Modified: 9/15/2023 1:05:45 PM