Rising Wage Inequality in the Argentinean Manufacturing Sector : The Impact of Trade and Foreign Investment on Technology and Skill Upgrading

@inproceedings{Bustos2005RisingWI,
  title={Rising Wage Inequality in the Argentinean Manufacturing Sector : The Impact of Trade and Foreign Investment on Technology and Skill Upgrading},
  author={P. Bustos},
  year={2005}
}
In the last 20 years, wage inequality has increased in many developing countries. Most research on this topic focuses on two possible causes: trade or skill-biased technical change. Several empirical studies document increases in skill intensity within all sectors, favoring the technological change explanation over trade. Instead, I present and test a model where trade and capital account liberalization increase the profitability of skill-biased new technologies in all sectors, but there is… CONTINUE READING
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