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Skill Classification and the Effects of Trade on Wage Inequality

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Abstract

The extent to which rising wage inequality in developed nations can be attributed to increased North-South trade has been a contentious issue over the last 20 years. We contribute to the debate by outlining a new skill classification method and evaluating the link between trade and wages using an economy-wide model. Our skill classification considers both academic and vocational qualifications and uses cluster methods to group together occupations with similar skill characteristics.

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Correspondence to David Greenaway.

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JEL no.

F16, J24, J31

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Winchester, N., Greenaway, D. & Reed, G. Skill Classification and the Effects of Trade on Wage Inequality. Rev. World Econ. 142, 287–306 (2006). https://doi.org/10.1007/s10290-006-0068-6

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  • DOI: https://doi.org/10.1007/s10290-006-0068-6

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