Please use this identifier to cite or link to this item: https://hdl.handle.net/10216/98405
Author(s): Óscar Afonso
Pedro Rui Mazeda Gil
Title: Effects of North-South trade on wage inequality and on human-capital accumulation
Issue Date: 2013
Abstract: This paper develops an endogenous growth model with technological knowledge directed towards high- versus low-skilled labour, augmented with North-South international trade of intermediate goods and with human-capital accumulation, to analyse how trade affects wage inequality and the inter-country human-capital gap. Trade is a vehicle for inter-country technological-knowledge diffusion and human-capital accumulation interacts with the intra-country direction of technological knowledge arising from trade. In contrast with the market-size effect, stressed in the skill-biased technological change literature, the operation of the price channel following openness to trade predicts, in line with the recent trends in developed and developing countries, an increasing technological-knowledge bias towards high-skilled human capital. This, in turn, decreases inter-country gaps of technological knowledge and human capital and increases intra-country wage inequality. Also in line with recent empirical evidence, inter-country wage convergence is induced by the trade-opening level effect.
Subject: Economia, Economia e gestão
Economics, Economics and Business
Scientific areas: Ciências sociais::Economia e gestão
Social sciences::Economics and Business
URI: https://repositorio-aberto.up.pt/handle/10216/98405
Document Type: Artigo em Revista Científica Internacional
Rights: restrictedAccess
Appears in Collections:FEP - Artigo em Revista Científica Internacional

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