• DOI:10.1002/9780470756461.CH6
Corpus ID: 154704020

Global Production Sharing and Rising Inequality: A Survey of Trade and Wages

@article{Feenstra2001GlobalPS,
  title={Global Production Sharing and Rising Inequality: A Survey of Trade and Wages},
  author={R. Feenstra and G. Hanson},
  journal={NBER Working Paper Series},
  year={2001}
}

R. Feenstra, G. Hanson

Published 2001

Economics

NBER Working Paper Series

We argue that trade in intermediate inputs, or 'global production sharing,' is a potentially important explanation for the increase in the wage gap between skilled and unskilled workers in the U.S. and elsewhere. Using a simple model of heterogeneous activities within an industry, we show that trade in inputs has much the same impact on labor demand as does skill-biased technical change: both of these will shift demand away from low-skilled activities, while raising relative demand and wages of… CONTINUE READING

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