Arbeitspapier
Trade Tariff, Wage Gap and Public Spending
This paper studies the interplay between the wage gap and government spending in a small open economy facing a shock in trade policy. We consider a specific factor model with an export sector, which uses skilled labour, and an import-competing sector, which uses unskilled labour. We find the conditions under which there exists an inverse (direct) relation between trade lib-eralization (protection), which increases (decreases) the skilled-unskilled wage gap, and the level of government expenditure. We also show how either an unbalanced distribution of political bargaining power, or tariff revenue co-financing public spending may break this direct relation.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 7847
- Klassifikation
-
Wirtschaft
Economic Integration
Trade and Labor Market Interactions
National Government Expenditures and Related Policies: General
- Thema
-
wage gap
trade liberalization
positive political economy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Giuranno, Michele G.
Nocco, Antonella
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Giuranno, Michele G.
- Nocco, Antonella
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2019
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