@article{743faedd60474a328afdcf680d1a0b5f,
title = "TRADE-INDUCED SKILL POLARIZATION",
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.",
author = "Gu, {Grace W.} and Samreen Malik and Dario Pozzoli and Vera Rocha",
note = "Funding Information: from the Carlsberg Foundation (grant number: CF-300664) is gratefully acknowledged. We especially thank Editor Keith Maskus and anonymous referees for many comments that helped us significantly improve the paper. We would also like to thank seminar participants at Cornell University, the University of California? Santa Cruz, Pennsylvania State University, the Norwegian School of Economics (NHH Bergen), Copenhagen Business School, New York University (AD), and the Rochester Midwest International Trade Conference for helpful advice and feedback. These comments guided us in the major revisions of an earlier version previously circulated as IZA Discussion Paper No. 10035. We are especially grateful for useful discussions with Arpad Abraham, Nageeb Ali, Ragnhild Balsvik, Arnab Basu, Italo Colantone, Nancy Chau, Jonathan Eaton, Cristian Pop Echeles, Christian Haefke, Jean Imbs, Justinas Pelenis, Kala Krishna, Michael Reiter, and Kevin Thom. The usual disclaimer applies Publisher Copyright: {\textcopyright} 2019 Western Economic Association International",
year = "2020",
month = jan,
day = "1",
doi = "10.1111/ecin.12834",
language = "English (US)",
volume = "58",
pages = "241--259",
journal = "Economic Inquiry",
issn = "0095-2583",
publisher = "Wiley-Blackwell",
number = "1",
}