Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95463
Authors: 
Tomat, Gian Maria
Year of Publication: 
2010
Series/Report no.: 
LIS Working Paper Series 533
Abstract: 
In the 2X2X2 Heckscher-Ohlin model there exists a one to one relation between relative good prices and relative factor prices. A change in the relative price of one good changes the relative price of the factor used intensively in the production of the good in the same direction. We review this relation in the context of an analysis of European wage inequality. During the 1980-2000 period wage inequality in Europe increased. However, this movement is not explained by changes in wage differentials by skill level. The education and experience wage premiums remained relatively constant over the sample period. The largest fraction of the increase in wage inequality is accounted by residual inequality.
Subjects: 
Inter-industry Trade
Intra-industry Trade
Product Differentiation
Wage Inequality
JEL: 
D31
F16
J31
Document Type: 
Working Paper
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