Trade and Wage Inequality: Local Versus Global Comparative Advantages

@inproceedings{Matan2010TradeAW,
  title={Trade and Wage Inequality: Local Versus Global Comparative Advantages},
  author={Alessia Matan{\`o} and Paolo Naticchioni},
  year={2010}
}
This paper shows that disentangling the local and global dimensions of trade can be crucial to get a better understanding of the trade impact on wage inequality. In particular, it allows us to reconcile the empirical evidence with the Heckscher-Ohlin-Samuelson predictions. Our focus here is on Italy, which represents, in our opinion, an appropriate case study. As for local trade -within its own cone of diversification - Italy is specialized in the production of unskill-intensive goods, while… CONTINUE READING