A Primer on Trade and Inequality

Economists have generally underplayed, until recently, globalization’s role in exacerbating inequality in the advanced economies. But in the public imagination, globalization’s adverse effects have loomed much larger, significantly contributing to the backlash against the political mainstream and the rise of far-right populism. The literature on trade and inequality is in fact exceptionally rich, with important theoretical insights as well as extensive empirical findings covering recent experience. In these comments, I will summarize a few key takeaways.