American Economic Review Vol. 102 No. 3 2012

Global Supply Chains and Wage Inequality

Arnaud Costinot¹; Jonathan Vogel²; Su Wang¹

¹ Massachusetts Institute of Technology, Department of Economics, 50 Memorial Drive, Building E52, Room 243B, Cambridge, MA 02142-1347. · ² Columbia University, Department of Economics, 420 West 118th Street, New York, NY 10027.

Abstract

A salient feature of globalization in recent decades is the emergence of “global supply chains” in which different countries specialize in different stages of a sequential production process. In Costinot, Vogel and Wang (2011) (CVW hereafter), we have developed a simple theory of trade with sequential production to shed light on how global supply chains affect the interdependence of nations. In this paper we develop a multi-factor extension of CVW to explore how the emergence of global supply chains may affect wage inequality within countries.

DOI

10.1257/aer.102.3.396

Volume

102

Issue

3

Pages

396-401

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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