TY - BOOK ID - 134264835 TI - Recent Perspectives on Trade and Inequality AU - Harrison, Ann AU - McLaren, John AU - McMillan, Margaret PY - 2011 PB - Washington, D.C., The World Bank, DB - UniCat KW - Economic Theory & Research KW - Emerging Markets KW - Heckscher-Ohlin analysis KW - Income inequality KW - International Economics & Trade KW - Labor Markets KW - Labor Policies KW - Labor-market friction KW - Poverty Reduction KW - Trade KW - Trade Policy KW - Within-industry effects UR - https://www.unicat.be/uniCat?func=search&query=sysid:134264835 AB - The 1990's dealt a blow to traditional Heckscher-Ohlin analysis of the relationship between trade and income inequality, as it became clear that rising inequality in low-income countries and other features of the data were inconsistent with that model. As a result, economists moved away from trade as a plausible explanation for rising income inequality. In recent years, however, a number of new mechanisms have been explored through which trade can affect(and usually increase) income inequality. These include within-industry effects due to heterogeneous firms; effects of offshoring of tasks; effects on incomplete contracting; and effects of labor-market frictions. A number these mechanisms have received substantial empirical support. ER -