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Trade, Education, and Income Inequality

Author

Listed:
  • Markus Brueckner
  • Ngo Van Long
  • Joaquin Vespignani
  • Ngo Van Long

Abstract

This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.

Suggested Citation

  • Markus Brueckner & Ngo Van Long & Joaquin Vespignani & Ngo Van Long, 2020. "Trade, Education, and Income Inequality," CESifo Working Paper Series 8370, CESifo.
    • Handle: RePEc:ces:ceswps:_8370
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    More about this item

    Keywords

    non-gravity trade; inequality; education;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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