Authors:

  • Elhanan Helpman

Excerpt

Trade and Inequality: From Theory to Estimation. Elhanan Helpman, February 12, 2014, Paper. "While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations and sectors. Using linked employer-employee data for Brazil, we show that much of overall wage inequality arises within sector-occupations and for workers with similar observable characteristics; this within component is driven by wage dispersion between firms; and wage dispersion between firms is related to firm employment size..."  Link