The Causes and Consequences of Changing Earnings Inequality: W(h)ither the Debate?
Author(s)
Blanchflower, David G.; Slaughter, Matthew J.
Abstract
The relationship of international trade to income inequality and unemployment has been widely debated by both labor economists and trade economists. The two groups typically use incompatible analytical frameworks, making it difficult to compare their results. This paper, a collaborative effort by a labor economist and a trade economist, reviews the research to date on internationalization and labor markets, tentatively identifies areas of consensus and areas of remaining uncertainty, and observes that public policy choices may not depend on the fine points of debate among economists.