Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/242886
Authors: 
Griffith, Rachel
Levell, Peter
Norris Keiller, Agnes
Year of Publication: 
2020
Series/Report no.: 
IFS Working Paper No. W20/27
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
We examine the distributional consequences of post-Brexit trade barriers on wages in the UK. We quantify changes in trade costs across industries accounting for input-output links across domestic industries and global value chains. We allow for demand substitution by firms and consumers and worker reallocation across industries. We document the impact at the individual and household level. Blue-collar workers are the most exposed to negative consequences of higher trade costs, because they are more likely to be employed in industries that face increases in trade costs, and are less likely to have good alternative employment opportunities available in their local labour markets. Overall new trade costs have a regressive impact with lower-paid workers facing higher exposure than higher-paid workers once we account for the exposure of other household members.
Subjects: 
Trade
income distribution
inequality
JEL: 
D33
D57
F61
F66
J20
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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