Trade uncertainty and income inequality

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Trade & Development Seminars

Date & time

Tuesday 10 October 2017
2.00pm–3.30pm

Venue

Coombs Seminar Room C, Coombs Building, Fellows Road, ANU

Speaker

Markus Brueckner, ANU.

This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population is educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.

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