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Recent developments on trade and inequality

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  • Mi Dai

Abstract

This paper surveys developments in the literature on trade and inequality over the past decade. I first discuss the impact of trade on nominal income inequality, with a focus on firm heterogeneity and the role of mobility frictions. Then, I provide an overview of the literature on the redistributional role of government in an open economy. Finally, I assess the current state of studies on how trade affects real income inequality through the expenditure channel.

Suggested Citation

  • Mi Dai, 2023. "Recent developments on trade and inequality," Journal of Economic Surveys, Wiley Blackwell, vol. 37(5), pages 1636-1659, December.
    • Handle: RePEc:bla:jecsur:v:37:y:2023:i:5:p:1636-1659
    DOI: 10.1111/joes.12546
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