TY - JOUR AU - Klein,Michael W. AU - Moser,Christoph AU - Urban,Dieter M. TI - The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality JF - National Bureau of Economic Research Working Paper Series VL - No. 15985 PY - 2010 Y2 - May 2010 UR - http://www.nber.org/papers/w15985 L1 - http://www.nber.org/papers/w15985.pdf N1 - Author contact info: Michael W. Klein Fletcher School Tufts University Medford, MA 02155 Tel: (617) 627-2718 Fax: (617) 627-3712 E-Mail: michael.klein@tufts.edu Christoph Moser ETH Zurich KOF Swiss Economic Institute 8092 Zurich, Switzerland E-Mail: moser@kof.ethz.ch Dieter Urban Faculty of Business and Economics RWTH Aachen University Templergraben 64 52062 Aachen, Germany E-Mail: dieter.urban@wiwi.rwth-aachen.de AB - International trade has been cited as a source of widening wage inequality in industrial nations. Consistent with this claim, we find a significant export wage premium for high-skilled workers in German manufacturing and an export wage discount for lower skilled workers, using matched employer-employee data. Estimates suggest that the export wage premium to high-skilled workers represents up to one third of their overall skill premium. But, while an increase in exports increases wage inequality along the dimension of skill, it diminishes the wage inequality associated with both gender and nationality. In this way, trade contributes to narrowing wage gaps and mitigating wage inequality in German manufacturing. ER -