Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103122
Authors: 
Edwards, T. Huw
Perroni, Carlo
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4997
Abstract: 
We investigate the theoretical relationship between wage concentration and international market integration. Access to imported varieties lowers the cost of intermediate inputs (“machines”) used to carry out production tasks, causing workers with different comparative abilities to be sorted across a narrower range of tasks and raising the concentration of earnings. The accompanying shift in input use further expands the range of traded varieties, which further lowers the cost of machines. Effects on the volume of intermediate goods trade and the number of varieties produced are mutually reinforcing, resulting in a multiplier effect of market integration on wage concentration.
Subjects: 
trade
skills
and tasks
wage inequality
JEL: 
F15
F16
D31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.