@techreport{NBERw8446,
 title = "Ginis in General Equilibrium: Trade, Technology and Southern Inequality",
 author = "Susan Chun Zhu and Daniel Trefler",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "8446",
 year = "2001",
 month = "August",
 URL = "http://www.nber.org/papers/w8446",
 abstract = {Within developing and newly industrialized countries, rising wage inequality is both common and highly correlated with export growth. This is incompatible with the Stolper-Samuelson theorem, but suggestive of a role for technological catch-up. We develop this insight using a model that features both Ricardian and endowments-based comparative advantage. In this model Southern catch-up induces a correlation between rising inequality and export growth. It also induces a shift in trade patterns that results in skill upgrading and rising inequality in both the South and the North. A rudimentary empirical exercise reveals that, as predicted, Southern skill upgrading is correlated with the trade-weighted average rate of Southern catch-up.},
}