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<p>This paper examines how the wage gap and skill distribution among workers with different skills respond to trade integration. Using Chinese city-level data for 2010–2020, we find that trade has a negative impact on the wage gap between middle and primary skilled workers based on their education, and a positive impact on the wage gap between high and middle skilled groups. The former has a negative effect on the mean value and distribution of labor skills, while the latter has a positive effect. Therefore, international trade activities will induce the problem of skill polarization, and the wage gap can explain 50% of the effect of trade on skill polarization. In addition, in the middle-aged group of workers and high-tech intensive industries, the income gap, especially the income gap between high and middle skill groups, brings about the problem of skill polarization.</p>

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Effects of global trade integration on skill polarization and wage disparity

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年8月28日

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  • Shuyun Chen,
  • Fang Luo,
  • Ting Xiao,
  • Liang Ding

摘要

This paper examines how the wage gap and skill distribution among workers with different skills respond to trade integration. Using Chinese city-level data for 2010–2020, we find that trade has a negative impact on the wage gap between middle and primary skilled workers based on their education, and a positive impact on the wage gap between high and middle skilled groups. The former has a negative effect on the mean value and distribution of labor skills, while the latter has a positive effect. Therefore, international trade activities will induce the problem of skill polarization, and the wage gap can explain 50% of the effect of trade on skill polarization. In addition, in the middle-aged group of workers and high-tech intensive industries, the income gap, especially the income gap between high and middle skill groups, brings about the problem of skill polarization.