The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality

44 Pages Posted: 17 May 2010 Last revised: 6 Sep 2010

See all articles by Michael W. Klein

Michael W. Klein

Tufts University - The Fletcher School of Law and Diplomacy; National Bureau of Economic Research (NBER)

Christoph Moser

Johannes Gutenberg University Mainz - Faculty of Law and Economics

Dieter Michael Urban

RWTH Aachen University - School of Economics and Business Administration

Date Written: May 2010

Abstract

International trade has been cited as a source of widening wage inequality in industrial nations. Consistent with this claim, we find a significant export wage premium for high-skilled workers in German manufacturing and an export wage discount for lower skilled workers, using matched employer-employee data. Estimates suggest that the export wage premium to high-skilled workers represents up to one third of their overall skill premium. But, while an increase in exports increases wage inequality along the dimension of skill, it diminishes the wage inequality associated with both gender and nationality. In this way, trade contributes to narrowing wage gaps and mitigating wage inequality in German manufacturing.

Suggested Citation

Klein, Michael W. and Moser, Christoph and Urban, Dieter Michael, The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality (May 2010). NBER Working Paper No. w15985, Available at SSRN: https://ssrn.com/abstract=1607475

Michael W. Klein (Contact Author)

Tufts University - The Fletcher School of Law and Diplomacy ( email )

Medford, MA 02155
United States
617-627-2718 (Phone)
617-627-3712 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Christoph Moser

Johannes Gutenberg University Mainz - Faculty of Law and Economics ( email )

Chair of Corporate Finance
D-55099 Mainz, 55128
Germany

Dieter Michael Urban

RWTH Aachen University - School of Economics and Business Administration ( email )

Aachen
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
16
Abstract Views
456
PlumX Metrics