Grace W. Gu, Samreen Malik, Dario Pozzoli, Vera Rocha

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish (US)
Pages (from-to)241-259
Number of pages19
JournalEconomic Inquiry
Issue number1
StatePublished - Jan 1 2020

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics


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