Trade uncertainty and income inequality

Vol: 
24/2017
Author name: 
Brueckner M
Vespignani J
Year: 
2017
Month: 
March
Abstract: 

This paper examines the relationship between trade uncertainty and income inequality. In countries where only a small share of the population is educated, an increase in trade uncertainty is associated with a significant increase in income inequality. As education of the population increases the correlation between trade uncertainty and income inequality becomes smaller. Trade uncertainty has no significant effect on income inequality in countries that are world leaders in education.

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