International Trade, Wage Inequality and the Developing Economy: A General Equilibrium Approach (Contributions to Economics)

This book deals with the impact that international trade is likely to have on the skilled-unskilled wage gap in a typical developing economy. This is the first theoretical monograph on this particular issue which has already generated substantial debate and voluminous work for the developed countries. A unique feature of this work is that it tries to explain the possibility of rising inequality across trading nations and looks at the segmented labour markets of the poor economies. It makes convincing arguments that the standard general equilibrium models, the main workhorse of trade theory, can be given a creative facelift to address a number of critical and emerging issues in the area of trade and development. "This book deals with the impact that international trade is likely to have on the skilled-unskilled wage gap in a typical developing economy. This is the first theoretical monograph on this particular issue which has already generated substantial debate and voluminous work for the developed countries. A unique feature of this work is that it tries to explain the possibility of rising inequality across trading nations and looks at the segmented labour markets of the poor economies. It makes convincing arguments that the standard general equilibrium models, the main workhorse of trade theory, can be given a creative facelift to address a number of critical and emerging issues in the area of trade and development."--BOOK JACKET Front Matter....Pages I-XI Introduction....Pages 1-6 Front Matter....Pages 7-7 Wages and Employment....Pages 9-34 Front Matter....Pages 35-35 The Standard Trade Theory: How far Does it Go?....Pages 37-51 Trade Liberalization and Symmetric Wage-Gap....Pages 53-60 Input Trade: An Alternative Explanation....Pages 61-68 Front Matter....Pages 69-69 Liberalization and Employment in the Organized Sector....Pages 71-92 Front Matter....Pages 93-93 Diverse Trade Pattern, Complementarity and Fragmentation....Pages 95-111 Segmented Input Markets and Non-Traded Good....Pages 113-130 Trade, Skill Formation and the Wage-Gap....Pages 131-151 Conclusion....Pages 153-155 Back Matter....Pages 157-176