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Protection and skills: Does trade policy favor low‐skill workers?

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  • Scott Bradford

Abstract

Many believe that international trade barriers in rich nations help low‐skill workers. Also, the empirical endogenous protection literature strongly implies that protection decreases with skill levels. This paper presents evidence against this conventional wisdom. Regressions based on a political economy model with search frictions and unemployment imply that protection and skill levels actually have a mound‐shaped relationship: industries with skills in the middle range get more protection than industries at either end of the distribution. Apparently, the politics of trade policy trump social concerns, rendering protection less “progressive” than is commonly believed.

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  • Scott Bradford, 2019. "Protection and skills: Does trade policy favor low‐skill workers?," Review of International Economics, Wiley Blackwell, vol. 27(3), pages 981-1000, August.
    • Handle: RePEc:bla:reviec:v:27:y:2019:i:3:p:981-1000
    DOI: 10.1111/roie.12406
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