This paper tests the predictions of the Stolper-Samuelson Theorem in India after it underwent major trade reform in 1991. Using industry level tariff data, the paper empirically examines trade liberalization’s effect on the wages of high-skilled labor relative to low skilled labor within firms. The study finds empirical evidence to support growing wage differentials within firms, which contradict the predictions of the Stolper-Samuelson Theorem. Additionally, when controlling for firm size and the effects of the global financial crisis, these results remain robust. Finally, the paper explores training and welfare and R&D’s effect on the wage differentials within firms, finding a direct relationship between training and welfare expenditures and executive compensation but no significant impact of R&D expenditure.
","abstract_html":"<p>This paper tests the predictions of the Stolper-Samuelson Theorem in India after it underwent major trade reform in 1991. Using industry level tariff data, the paper empirically examines trade liberalization’s effect on the wages of high-skilled labor relative to low skilled labor within firms. The study finds empirical evidence to support growing wage differentials within firms, which contradict the predictions of the Stolper-Samuelson Theorem. Additionally, when controlling for firm size and the effects of the global financial crisis, these results remain robust. Finally, the paper explores training and welfare and R&D’s effect on the wage differentials within firms, finding a direct relationship between training and welfare expenditures and executive compensation but no significant impact of R&D expenditure. </p>","abstract_has_math":false,"creators":["Michael, Anthony M"],"institution":null,"degree_name":"Master of Science in International and Development Economics (MSIDEC)","degree_level":"Thesis","degree_discipline":"Economics","degree_department":null,"school":null,"contributors":["Suparna Chakraborty"],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2016,"date_issued":"2016-05-20T07:00:00Z","date_published":"2016-05-20T07:00:00Z","updated_at":"2026-07-24T05:43:40Z","subjects":["Stolper-Samuelson","Trade","Inequality","Econometrics","India","Wage","Growth and Development","Income Distribution","International Economics","Labor Economics"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://repository.usfca.edu/thes/179","outbound_label":"Repository record","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Suparna Chakraborty"]},{"key":"dc:creator","label":"Author","values":["Michael, Anthony M"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.available","label":"Dc Date Available","values":["2016-06-03T07:00:00Z"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Thesis"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Master of Science in International and Development Economics (MSIDEC)"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Stolper-Samuelson","Trade","Inequality","Econometrics","India","Wage","Growth and Development","Income Distribution","International Economics","Labor Economics"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["https://repository.usfca.edu/thes/179"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["This paper tests the predictions of the Stolper-Samuelson Theorem in India after it underwent major trade reform in 1991. Using industry level tariff data, the paper empirically examines trade liberalization’s effect on the wages of high-skilled labor relative to low skilled labor within firms. The study finds empirical evidence to support growing wage differentials within firms, which contradict the predictions of the Stolper-Samuelson Theorem. Additionally, when controlling for firm size and the effects of the global financial crisis, these results remain robust. Finally, the paper explores training and welfare and R&D’s effect on the wage differentials within firms, finding a direct relationship between training and welfare expenditures and executive compensation but no significant impact of R&D expenditure.
"]},{"key":"dc:title","label":"Title","values":["Evaluating Stolper-Samuelson: Trade Liberalization & Wage Inequality in India"]}]}],"canonical_facts":{"dc:contributor":["Suparna Chakraborty"],"dc:creator":["Michael, Anthony M"],"dc:date.available":["2016-06-03T07:00:00Z"],"dc:description.abstract":["This paper tests the predictions of the Stolper-Samuelson Theorem in India after it underwent major trade reform in 1991. Using industry level tariff data, the paper empirically examines trade liberalization’s effect on the wages of high-skilled labor relative to low skilled labor within firms. The study finds empirical evidence to support growing wage differentials within firms, which contradict the predictions of the Stolper-Samuelson Theorem. Additionally, when controlling for firm size and the effects of the global financial crisis, these results remain robust. Finally, the paper explores training and welfare and R&D’s effect on the wage differentials within firms, finding a direct relationship between training and welfare expenditures and executive compensation but no significant impact of R&D expenditure.
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