IZA DP No . 2913 Trade , Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector

@inproceedings{Verhoogen2004IZADN,
  title={IZA DP No . 2913 Trade , Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector},
  author={Eric A. Verhoogen},
  year={2004}
}
  • Eric A. Verhoogen
  • Published 2004
Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector This paper proposes a new mechanism linking trade and wage inequality in developing countries – the quality-upgrading mechanism – and investigates its empirical implications in panel data on Mexican manufacturing plants. In a model with heterogeneous plants and quality-differentiated goods, only the most productive plants in a country like Mexico enter the export market, they produce higher-quality goods to appeal… CONTINUE READING
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