Trade Policy and the Household Distribution of Income
Tinbergen Institute Discussion Paper No. 2004-051/2
27 Pages Posted: 5 May 2004
There are 2 versions of this paper
Trade Policy and the Household Distribution of Income
Trade Policy and the Household Distribution of Income
Abstract
We explore the relationship between import protection and the household distribution of income. We first develop a general-equilibrium mapping from tariffs to household inequality measures. This also yields predictions for linkages between tariffs, development level, and observed household inequality. Working with a new dataset, we then examine crosscountry variation in inequality with respect to import protection. Results are consistent with predictions of the factor-intensity model of trade. Regression results suggest that import protection makes income distribution worse for countries in labor-intensive diversification cones. This relationship shifts to one of falling inequality as incomes rise and we move to capital-intensive diversification cones.
Keywords: trade, inequality, distribution of income, Atkinson index, Gini coefficient, globalization, tariffs
JEL Classification: F13, D31, O15
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By David Dollar and Aart Kraay
-
Growth Still is Good for the Poor
By David Dollar, Tatjana Kleineberg, ...
-
What Can New Survey Data Tell Us About Recent Changes in Distribution and Poverty?
By Martin Ravallion and Shaohua Chen
-
By David Dollar and Aart Kraay
-
How Did the World's Poorest Fare in the 1990s?
By Shaohua Chen and Martin Ravallion
-
Inequality and Growth: What Can the Data Say?
By Abhijit V. Banerjee and Esther Duflo
-
Inequality and Growth: What Can the Data Say?
By Abhijit V. Banerjee and Esther Duflo
-
True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone