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The Impact of Trade Liberalization in Intermediate Inputs on Wage Inequality in China


  • 研討會日期 : 2012-10-02
  • 時間 : 14:30
  • 主講人 : Professor Bo Chen
  • 地點 : Conference Room B110
  • 演講者簡介 : Bo Chen received his Ph.D. in Economics from Simon Fraser University in 2008. He is currently serving as Assistant Professor and Associate Department Head of International Trade at Shanghai University of Finance and Economics. His research field is in international trade, economic integration, and China’s economy.
  • 演講摘要 : This paper develops a model of strong complementarity between imported inputs and unskilled labor (eventhough they are substitutes in production) and show that a reduction of input tariffs can increases the demand for both imported inputs and unskilled labor. Hence the unskilled wage may rise faster than the skilled, which reduces the wage inequality. We then test the theory by using highly disaggregated firm level data in China with detailed trade and tariff information from 2000 to 2006. The estimation results support out theoretical predictions that a reduction in input tariff due to trade liberalization significantly mitigates wage inequality. The empirical finding is robust to various alternatives.