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Public pollution abatement and wage inequality

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  • Jiancai Pi
  • Shenyu Shi

Abstract

This paper constructs three-sector general equilibrium models to investigate how public pollution abatement affects the skilled–unskilled wage inequality. In the basic model with full employment, we find that a higher degree of public pollution abatement will decrease the wage inequality if the intensity of skilled labor in the urban skilled sector is sufficiently large and expand or narrow down the wage gap if this intensity is sufficiently small. In the extended models, we consider other four cases, and obtain the results similar or dissimilar to that of the basic model.

Suggested Citation

  • Jiancai Pi & Shenyu Shi, 2019. "Public pollution abatement and wage inequality," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(2), pages 257-275, February.
    • Handle: RePEc:taf:jitecd:v:28:y:2019:i:2:p:257-275
    DOI: 10.1080/09638199.2018.1521464
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    Cited by:

    1. Jiancai Pi & Xinyi Liu, 2024. "Pollution control and multinational firms," International Journal of Economic Theory, The International Society for Economic Theory, vol. 20(1), pages 3-27, March.
    2. Jiancai Pi & Yuhan Luo, 2024. "Climate change and wage inequality," Journal of Economics, Springer, vol. 143(3), pages 279-303, December.
    3. Leonard F. S. Wang & Ji Sun, 2023. "Corporate profit tax, firm entry with unemployment, and income inequality," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 380-392, April.
    4. Qin, Ming & Fan, Lin-feng & Li, Jing & Li, Yi-fei, 2021. "The income distribution effects of environmental regulation in China: The case of binding SO2 reduction targets," Journal of Asian Economics, Elsevier, vol. 73(C).

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