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LUND UNIVERSITY LIBRARIES

Trade Liberalization, Initial Inequality and the Labor Income Share: Evidence from Latin America

André, Marcus LU (2026) EKHS21 20261
Department of Economic History
Abstract
This thesis asks whether pre-existing income inequality has a conditioning effect on how trade openness affects the labor income share in Latin America. Using a two-way fixed effects panel covering 18 countries from 1980 to 2023, with an interaction term between trade openness and each country's initial Gini coefficient, the analysis finds no robust evidence that higher initial inequality weakens the labor income share response to trade. The most consistent finding is a negative coefficient on the human capital index, suggesting skill-biased technological change is a more powerful driver of labor share dynamics than trade openness itself.
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author
André, Marcus LU
supervisor
organization
course
EKHS21 20261
year
type
H1 - Master's Degree (One Year)
subject
keywords
Trade liberalization, inequality, labor income share, latin america, trade openness, skill-biased technological change
language
English
id
9251502
date added to LUP
2026-09-23 09:44:29
date last changed
2026-09-23 09:44:29
@misc{9251502,
  abstract     = {{This thesis asks whether pre-existing income inequality has a conditioning effect on how trade openness affects the labor income share in Latin America. Using a two-way fixed effects panel covering 18 countries from 1980 to 2023, with an interaction term between trade openness and each country's initial Gini coefficient, the analysis finds no robust evidence that higher initial inequality weakens the labor income share response to trade. The most consistent finding is a negative coefficient on the human capital index, suggesting skill-biased technological change is a more powerful driver of labor share dynamics than trade openness itself.}},
  author       = {{André, Marcus}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Trade Liberalization, Initial Inequality and the Labor Income Share: Evidence from Latin America}},
  year         = {{2026}},
}