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Should-Read: Elhanan Helpman, Oleg Itskhoki, Marc-Andreas Muendler, and Stephen J. Redding: From Theory to Estimation

Should-Read: Elhanan Helpman, Oleg Itskhoki, Marc-Andreas Muendler, and Stephen J. Redding: From Theory to Estimation: “Trade and Inequality: While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors…

…more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations and sectors…. [In] Brazil… much… overall wage inequality arises within sector–occupations and for workers with similar observable characteristics; this within component is driven by wage dispersion between firms; and wage dispersion between firms is related to firm employment size and trade participation. We then extend the heterogenous-firm model
of trade and inequality from Helpman et al. (2010) and estimate it with Brazilian data. We show that the
estimated model provides a close approximation to the observed distribution of wages and employment.
We use the estimated m…

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Should-Read: Elhanan Helpman, Oleg Itskhoki, Marc-Andreas Muendler, and Stephen J. Redding: From Theory to Estimation

November 3, 2017

AUTHORS:

November 3, 2017

AUTHORS:

U.S. economic mobility trends and outcomes

U.S. income and wealth inequality are no longer increasing, but a return to the equitable levels of the mid-20th century isn’t likely anytime soon