International Trade, Wage Inequality and the Developing Economy

1. Front Matter

   Pages I-XI

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2. Introduction

   1. Introduction

      • Sugata Marjit, Rajat Acharyya

      Pages 1-6

3. Evidence and the Debate

   1. Front Matter

      Pages 7-7

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   2. Wages and Employment

      • Sugata Marjit, Rajat Acharyya

      Pages 9-34

4. Explaining Symmetric Wage-Gap

   1. Front Matter

      Pages 35-35

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   2. The Standard Trade Theory: How far Does it Go?

      • Sugata Marjit, Rajat Acharyya

      Pages 37-51

   3. Trade Liberalization and Symmetric Wage-Gap

      • Sugata Marjit, Rajat Acharyya

      Pages 53-60

   4. Input Trade: An Alternative Explanation

      • Sugata Marjit, Rajat Acharyya

      Pages 61-68

5. Trade, Capital Flow and Employment

   1. Front Matter

      Pages 69-69

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   2. Liberalization and Employment in the Organized Sector

      • Sugata Marjit, Rajat Acharyya

      Pages 71-92

6. Trade Liberalization, Wage Inequality and Employment in the South

   1. Front Matter

      Pages 93-93

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   2. Diverse Trade Pattern, Complementarity and Fragmentation

      • Sugata Marjit, Rajat Acharyya

      Pages 95-111

   3. Segmented Input Markets and Non-Traded Good

      • Sugata Marjit, Rajat Acharyya

      Pages 113-130

   4. Trade, Skill Formation and the Wage-Gap

      • Sugata Marjit, Rajat Acharyya

      Pages 131-151

   5. Conclusion

      • Sugata Marjit, Rajat Acharyya

      Pages 153-155

7. Back Matter

   Pages 157-176

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This book deals with the impact that international trade is likely to have on the skilled-unskilled wage gap in a typical developing economy. This is the first theoretical monograph on this particular issue which has already generated substantial debate and voluminous work for the developed countries. A unique feature of this work is that it tries to explain the possibility of rising inequality across trading nations and looks at the segmented labour markets of the poor economies. It makes convincing arguments that the standard general equilibrium models, the main workhorse of trade theory, can be given a creative facelift to address a number of critical and emerging issues in the area of trade and development.

• General Equilibrium
• International Trade
• Wage Inequality
• development
• development economics
• labor markets

From the reviews:

"The book … explores the analytical borders of the standard trade model and shows how various modifications, motivated by a developing country (DC) perspective, can indeed reconcile the theory with the presumed facts. … I find the book by Marjit and Acharyya to be a very helpful contribution to the literature … . Apart from its obvious usefulness as a text for advanced courses on trade theory … the book may also serve as a useful source of inspiration for researchers … ." (Erich Gundlach, Review of World Economics, Vol. 140 (2), 2004)

• Centre for Studies in Social Sciences, Calcutta, India

  Sugata Marjit

• Department of Economics, Jadavpur University, Calcutta, India

  Rajat Acharyya

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