Abstract

CEREZO GARCIA, Verónica  and  LANDA DIAZ, Heri Oscar. The Stolper-Samuelson theorem, wage gap and trade liberalization: a comparative analysis of Mexico and the United States, 1990-2020. Inv. Econ [online]. 2023, vol.82, n.323, pp.105-131.  Epub May 12, 2023. ISSN 0185-1667.  https://doi.org/10.22201/fe.01851667p.2023.323.84380.

The standard theory of international trade maintains that free trade leads to good and factor of production prices equalization. Following this conventional wisdom, North American countries -in particular Mexico- engaged in a major trade liberalization which led significant increases of both exports and foreign direct investment in Mexico. The aim of this article is to assess whether economic liberalization has induced a Stolper-Samuelson effect in Mexico and the United States. An econometric model is built using panel data for the period 1990-2020 to enquire whether the wage gap has been affected by trade liberalization. It is shown empirically that such gap has been reduced for low-skilled Mexican workers, whereas a similar phenomenon is confirmed for higher-skilled American workers.

Keywords : economic growth; international trade; income distribution; panel data models; C23; D33; F16; O40.