TRADE-INDUCED SKILL POLARIZATION

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

doi:10.1111/ecin.12834

TRADE-INDUCED SKILL POLARIZATION

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

Economics

Research output: Contribution to journal › Article › peer-review

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.

Original language	English (US)
Pages (from-to)	241-259
Number of pages	19
Journal	Economic Inquiry
Volume	58
Issue number	1
DOIs	https://doi.org/10.1111/ecin.12834
State	Published - Jan 1 2020

ASJC Scopus subject areas

General Business, Management and Accounting
Economics and Econometrics

Access to Document

10.1111/ecin.12834

Cite this

@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 = "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 Publishing Ltd",

number = "1",

}

TY - JOUR

T1 - TRADE-INDUCED SKILL POLARIZATION

AU - Gu, Grace W.

AU - Malik, Samreen

AU - Pozzoli, Dario

AU - Rocha, Vera

PY - 2020/1/1

Y1 - 2020/1/1

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=85071855142&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85071855142&partnerID=8YFLogxK

U2 - 10.1111/ecin.12834

DO - 10.1111/ecin.12834

M3 - Article

AN - SCOPUS:85071855142

SN - 0095-2583

VL - 58

SP - 241

EP - 259

JO - Economic Inquiry

JF - Economic Inquiry

IS - 1

ER -

TRADE-INDUCED SKILL POLARIZATION

Abstract

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this