Date of Graduation
Spring 5-20-2016
Document Type
Thesis
Degree Name
Master of Science in International and Development Economics (MSIDEC)
College/School
College of Arts and Sciences
Department/Program
Economics
First Advisor
Suparna Chakraborty
Abstract
This paper tests the predictions of the Stolper-Samuelson Theorem in India after it underwent major trade reform in 1991. Using industry level tariff data, the paper empirically examines trade liberalization’s effect on the wages of high-skilled labor relative to low skilled labor within firms. The study finds empirical evidence to support growing wage differentials within firms, which contradict the predictions of the Stolper-Samuelson Theorem. Additionally, when controlling for firm size and the effects of the global financial crisis, these results remain robust. Finally, the paper explores training and welfare and R&D’s effect on the wage differentials within firms, finding a direct relationship between training and welfare expenditures and executive compensation but no significant impact of R&D expenditure.
Recommended Citation
Michael, Anthony M., "Evaluating Stolper-Samuelson: Trade Liberalization & Wage Inequality in India" (2016). Master's Theses. 179.
https://repository.usfca.edu/thes/179
Included in
Growth and Development Commons, Income Distribution Commons, International Economics Commons, Labor Economics Commons
