International trade, wage inequality and the developing economy: a general equilibrium approach/ Sugata Marjit, Rajat Acharyya

Includes bibliography and index

Introduction -- Wages and Employment -- The Standard Trade Theory: How far Does it Go? -- Trade Liberalization and Symmetric Wage-Gap -- Input Trade: An Alternative Explanation -- Liberalization and Employment in the Organized Sector -- Diverse Trade Pattern, Complementarity and Fragmentation -- Segmented Input Markets and Non-Traded Good -- Trade, Skill Formation and the Wage-Gap -- Conclusion

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.