Evaluating Stolper-Samuelson: Trade Liberalization & Wage Inequality in India

<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>

Name thesis:degree_name

Master of Science in International and Development Economics (MSIDEC)

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Economics

Year dc:date.available

2016

Author dc:creator

• Michael, Anthony M

Contributors dc:contributor

• Suparna Chakraborty

• Stolper-Samuelson
• Trade
• Inequality
• Econometrics
• India
• Wage
• Growth and Development
• Income Distribution
• International Economics
• Labor Economics

Repository record dc:identifier

https://repository.usfca.edu/thes/179

OAI identifier oai:identifier

oai:repository.usfca.edu:thes-1220