Public research seminar. A report by Paolo Epifani

On June 11, 2013, CMSSE was held the public research seminar. Report on the theme "Trade Imbalances and Wage Inequality" by Associate Professor Paolo Epifani (Bocconi University).

P.Epifani

On June 11, 2013, 16:00.
Public research seminar.
Associate Professor Paolo Epifani (Bocconi University). "Trade Imbalances and Wage Inequality".

We study, both theoretically and empirically, how trade imbalances affect wage inequality. We show that, in a Heckscher-Ohlin model with a continuum of goods, a Southern (Northern) trade surplus leads to an increase (reduction) in the average skill intensity of exports, in the relative demand for skills and in the skill premium in both countries. We provide robust evidence in support of these predictions using a large panel of countries and a panel of US manufacturing industries observed over the past three decades. Our results suggest that the large and growing North-South trade imbalances arisen over the last three decades may have exacerbated wage inequality worldwide.

The address of the seminar: Conference-hall (3rd floor), b. 47, pr. Rimskogo-Korsakova, Saint Petersburg.

Working language – English.