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Skill Classification and the Effects of Trade on Wage Inequality
Authors:Niven Winchester  David Greenaway  Geoffrey V Reed
Institution:(1) University of Otago, Dunedin, New Zealand;(2) School of Economics, University of Nottingham, University Park, Nottingham, NG7 2RD, UK
Abstract:The extent to which rising wage inequality in developed nations can be attributed to increased North-South trade has been a contentious issue over the last 20 years. We contribute to the debate by outlining a new skill classification method and evaluating the link between trade and wages using an economy-wide model. Our skill classification considers both academic and vocational qualifications and uses cluster methods to group together occupations with similar skill characteristics. JEL no. F16, J24, J31
Keywords:Skill classification  human capital  trade and wages
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