The economics of protectionism: Trade and wage inequality

Video

Published 24.08.17
Photo credit:
Jeremy Brooks

Eric Verhoogen explains the relationship between trade liberalisation and wage inequality in developing countries.

Extrapolating from his research in Mexico, Prof. Eric Verhoogen of Columbia University describes the economics of protectionism. Contrary to prior belief, he illustrates that trade liberalisation increases wage inequality and could likely cause social tensions, explaining the current backlash against globalisation emerging in developed countries.