Trade Uncertainty and Income Inequality

25 Pages Posted: 17 Mar 2017

See all articles by Markus Brueckner

Markus Brueckner

The Australian National University

Joaquin Vespignani

University of Tasmania - School of Economics and Finance; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

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Date Written: 2017-03-01

Abstract

This paper examines the relationship between trade uncertainty and income inequality. In countries where only a small share of the population is educated, an increase in trade uncertainty is associated with a significant increase in income inequality. As education of the population increases the relationship between trade uncertainty and income inequality becomes more muted. Trade uncertainty has no significant effect on income inequality in countries that are world leaders in education. Developing countries that want to reduce income inequality arising from trade uncertainty should therefore consider further improving their education system.

JEL Classification: E2, F1

Suggested Citation

Brueckner, Markus and Vespignani, Joaquin, Trade Uncertainty and Income Inequality (2017-03-01). Globalization and Monetary Policy Institute Working Paper No. 306, Available at SSRN: https://ssrn.com/abstract=2934816 or http://dx.doi.org/10.24149/gwp306

Markus Brueckner (Contact Author)

The Australian National University ( email )

Canberra, Australian Capital Territory 2601
Australia

Joaquin Vespignani

University of Tasmania - School of Economics and Finance ( email )

Commerce Building,
Sandy Bay Campus
Sandy Bay, TAS, Tasmania 7005
Australia

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

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