Publication

Jan 2010

This paper examines the puzzle of why lower-earning and less-skilled intensive industries tend to receive relatively high levels of trade protection. The authors propose and model one possible explanation: that individual aversion to inequality leads to systematic differences in support for trade protection, with labor intensive industry being the preferred recipient. They present structural estimates of the influence of envy and altruism on sector-specific trade policy preferences, using the US and China as examples.

Download English (PDF, 47 pages, 252 KB)
Author Xiabob Lü, Kenneth Scheve, Matthew J Slaughter
Series Leitner Program Working Papers
Publisher Leitner Program in International & Comparative Political Economy
Copyright © 2010 Leitner Program
JavaScript has been disabled in your browser