Not logged in.

Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title International trade and earnings inequality: a new factor content approach
Organization Unit
Authors
  • Rodrigo Adão
  • Paul Carrillo
  • Arnaud Costinot
  • Dave Donaldson
  • Dina Pomeranz
Language
  • English
Institution National Bureau of Economic Research
Series Name Working Paper Series
Number 28263
Number of Pages 86
Date 2020
Abstract Text We develop a new factor content approach to study the impact of trade on inequality. Our analysis generalizes the theoretical results of Deardorff and Staiger (1988) and improves on past empirical implementations of these results. Combined with unique administrative data from Ecuador, our approach yields measures of individual-level exposure to exports and imports, for both capital and labor income, as well as estimates of the incidence of such exposure across the income distribution. We find that international trade raises earnings inequality in Ecuador, especially in the upper-half of the income distribution. However, the drop in inequality experienced by Ecuador over the last decade would have been less pronounced in the absence of trade.
Official URL https://www.nber.org/papers/w28263
Digital Object Identifier 10.3386/w28263
Other Identification Number merlin-id:20763
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)