Download This PaperTrade‐Induced Skill Polarization
19 Pages Posted: 14 May 2020
Date Written: January 2020
Abstract
We study how wage gaps across skills and the skill distribution in an economy respond to trade integration. Using administrative data of Denmark (1995–2011), we find that trade has a negative effect on the wage gap between secondary and primary education and a positive effect on the wage gap between tertiary and secondary education. We also show that trade affects skill distribution and induces skill polarization: trade has a positive effect on both the mean and standard deviation of skills. Wage‐gap changes induced by trade shocks explain about 21%–30% of the effect of trade on skills.
Suggested Citation: Suggested Citation
Steadmon, Weishi and Malik, Samreen and Pozzoli, Dario and Rocha, Vera, Trade‐Induced Skill Polarization (January 2020). Economic Inquiry, Vol. 58, Issue 1, pp. 241-259, 2020, Available at SSRN: https://ssrn.com/abstract=3596432 or http://dx.doi.org/10.1111/ecin.12834
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.