{"id":"https://openalex.org/W7119644033","doi":"https://doi.org/10.26509/frbc-wp-202601","title":"When Trade Compresses: The Impact of Liberalization on Wage Inequality","display_name":"When Trade Compresses: The Impact of Liberalization on Wage Inequality","publication_year":2026,"publication_date":"2026-01-09","ids":{"openalex":"https://openalex.org/W7119644033","doi":"https://doi.org/10.26509/frbc-wp-202601"},"language":"en","primary_location":{"id":"doi:10.26509/frbc-wp-202601","doi":"https://doi.org/10.26509/frbc-wp-202601","is_oa":true,"landing_page_url":"https://doi.org/10.26509/frbc-wp-202601","pdf_url":"https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/working-papers/2026/wp2601.pdf","source":{"id":"https://openalex.org/S4210204369","display_name":"Working paper","issn_l":"2573-7945","issn":["2573-7945","2573-7953"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Working paper (Federal Reserve Bank of Cleveland)","raw_type":"report"},"volume":null,"type":"report","is_traditional":false,"indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"hybrid","oa_url":"https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/working-papers/2026/wp2601.pdf","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5057563033","display_name":"Victor Hernandez Martinez","orcid":"https://orcid.org/0000-0003-4918-3111","observed_orcids":["https://orcid.org/0000-0003-4918-3111"]},"institutions":[{"id":"https://openalex.org/I4210109900","display_name":"Federal Reserve Bank of Cleveland","ror":"https://ror.org/01wxdvj03","country_code":"US","type":"other","lineage":["https://openalex.org/I1317239608","https://openalex.org/I4210109900"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Victor Hernandez Martinez","raw_affiliation_strings":["Federal Reserve Bank of Cleveland, East 6th & Superior, Cleveland, OH 44101-1387, United States"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Federal Reserve Bank of Cleveland, East 6th & Superior, Cleveland, OH 44101-1387, United States","institution_ids":["https://openalex.org/I4210109900"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5058426835","display_name":"Nicholas Kozeniauskas","orcid":"https://orcid.org/0000-0002-5455-2404","observed_orcids":["https://orcid.org/0000-0002-5455-2404"]},"institutions":[{"id":"https://openalex.org/I50310733","display_name":"Banco de Portugal","ror":"https://ror.org/05hz4mv11","country_code":"PT","type":"other","lineage":["https://openalex.org/I50310733"]}],"countries":["PT"],"is_corresponding":false,"raw_author_name":"Nicholas Kozeniauskas","raw_affiliation_strings":["Bank of Portugal - Research Department, Av. Almirante Reis 71, 6th, Lisbon 1150-012, Portugal"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Bank of Portugal - Research Department, Av. Almirante Reis 71, 6th, Lisbon 1150-012, Portugal","institution_ids":["https://openalex.org/I50310733"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5042244415","display_name":"Rom\u00e1n Merga","orcid":null,"observed_orcids":[]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"Roman Merga","raw_affiliation_strings":["Independent"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Independent","institution_ids":[]}]}],"institutions":[],"countries_distinct_count":2,"institutions_distinct_count":2,"corresponding_author_ids":["https://openalex.org/A5057563033"],"corresponding_institution_ids":["https://openalex.org/I4210109900"],"apc_list":null,"apc_paid":null,"fwci":null,"has_fulltext":true,"cited_by_count":0,"citation_normalized_percentile":null,"cited_by_percentile_year":null,"biblio":{"volume":null,"issue":null,"first_page":null,"last_page":null},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10208","display_name":"Labor market dynamics and wage inequality","score":0.5365999937057495,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10208","display_name":"Labor market dynamics and wage inequality","score":0.5365999937057495,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10128","display_name":"Global trade and economics","score":0.4530999958515167,"subfield":{"id":"https://openalex.org/subfields/2000","display_name":"General Economics, Econometrics and Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10605","display_name":"Historical Economic and Social Studies","score":0.00419999985024333,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/trade-liberalization","display_name":"trade liberalization","score":1.0},{"id":"https://openalex.org/keywords/wage-inequality","display_name":"wage inequality","score":0.996999979019165},{"id":"https://openalex.org/keywords/wage-compression","display_name":"wage compression","score":0.9279999732971191},{"id":"https://openalex.org/keywords/internal-market","display_name":"internal market","score":0.7059999704360962},{"id":"https://openalex.org/keywords/spain","display_name":"Spain","score":0.4729999899864197},{"id":"https://openalex.org/keywords/import-competition","display_name":"import competition","score":0.9490000009536743},{"id":"https://openalex.org/keywords/export-opportunities","display_name":"export opportunities","score":0.9279999732971191},{"id":"https://openalex.org/keywords/distributional-effects-of-trade","display_name":"distributional effects of trade","score":0.8790000081062317},{"id":"https://openalex.org/keywords/shift-share-instrument","display_name":"shift-share instrument","score":0.6830000281333923},{"id":"https://openalex.org/keywords/unconditional-quantile-regression","display_name":"unconditional quantile regression","score":0.6949999928474426}],"concepts":[{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.76419997215271},{"id":"https://openalex.org/C2781426361","wikidata":"https://www.wikidata.org/wiki/Q5326940","display_name":"Earnings","level":2,"score":0.6276000142097473},{"id":"https://openalex.org/C2777388388","wikidata":"https://www.wikidata.org/wiki/Q6821213","display_name":"Wage","level":2,"score":0.6093999743461609},{"id":"https://openalex.org/C2994086107","wikidata":"https://www.wikidata.org/wiki/Q5055020","display_name":"Wage inequality","level":3,"score":0.544700026512146},{"id":"https://openalex.org/C35532855","wikidata":"https://www.wikidata.org/wiki/Q200435","display_name":"Free trade","level":2,"score":0.5376999974250793},{"id":"https://openalex.org/C145236788","wikidata":"https://www.wikidata.org/wiki/Q28161","display_name":"Labour economics","level":1,"score":0.529699981212616},{"id":"https://openalex.org/C91306197","wikidata":"https://www.wikidata.org/wiki/Q45767","display_name":"Competition (biology)","level":2,"score":0.5181000232696533},{"id":"https://openalex.org/C58823610","wikidata":"https://www.wikidata.org/wiki/Q746418","display_name":"Liberalization","level":2,"score":0.392300009727478},{"id":"https://openalex.org/C45555294","wikidata":"https://www.wikidata.org/wiki/Q28113351","display_name":"Inequality","level":2,"score":0.39079999923706055},{"id":"https://openalex.org/C110121322","wikidata":"https://www.wikidata.org/wiki/Q865811","display_name":"Distribution (mathematics)","level":2,"score":0.38929998874664307},{"id":"https://openalex.org/C118671147","wikidata":"https://www.wikidata.org/wiki/Q578714","display_name":"Quantile","level":2,"score":0.38510000705718994},{"id":"https://openalex.org/C130944947","wikidata":"https://www.wikidata.org/wiki/Q571044","display_name":"Wage share","level":4,"score":0.3763999938964844},{"id":"https://openalex.org/C204983608","wikidata":"https://www.wikidata.org/wiki/Q2111958","display_name":"Productivity","level":2,"score":0.3702000081539154},{"id":"https://openalex.org/C18547055","wikidata":"https://www.wikidata.org/wiki/Q47417","display_name":"International economics","level":1,"score":0.3671000003814697},{"id":"https://openalex.org/C166052673","wikidata":"https://www.wikidata.org/wiki/Q83021","display_name":"Empirical evidence","level":2,"score":0.3659000098705292},{"id":"https://openalex.org/C63817138","wikidata":"https://www.wikidata.org/wiki/Q3455889","display_name":"Quantile regression","level":2,"score":0.3562999963760376},{"id":"https://openalex.org/C120936955","wikidata":"https://www.wikidata.org/wiki/Q2155640","display_name":"Empirical research","level":2,"score":0.2705000042915344},{"id":"https://openalex.org/C26517878","wikidata":"https://www.wikidata.org/wiki/Q228039","display_name":"Key (lock)","level":2,"score":0.26980000734329224},{"id":"https://openalex.org/C3019417595","wikidata":"https://www.wikidata.org/wiki/Q5380817","display_name":"Low wage","level":3,"score":0.2574999928474426},{"id":"https://openalex.org/C182769425","wikidata":"https://www.wikidata.org/wiki/Q377302","display_name":"Trade barrier","level":2,"score":0.2533999979496002},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.2531999945640564},{"id":"https://openalex.org/C155202549","wikidata":"https://www.wikidata.org/wiki/Q178803","display_name":"International trade","level":1,"score":0.25049999356269836}],"mesh":[],"locations_count":3,"locations":[{"id":"doi:10.26509/frbc-wp-202601","doi":"https://doi.org/10.26509/frbc-wp-202601","is_oa":true,"landing_page_url":"https://doi.org/10.26509/frbc-wp-202601","pdf_url":"https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/working-papers/2026/wp2601.pdf","source":{"id":"https://openalex.org/S4210204369","display_name":"Working paper","issn_l":"2573-7945","issn":["2573-7945","2573-7953"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Working paper (Federal Reserve Bank of Cleveland)","raw_type":"report"},{"id":"doi:10.2139/ssrn.6064386","doi":"https://doi.org/10.2139/ssrn.6064386","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.6064386","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"},{"id":"pmh:oai:repositorio.ucp.pt:10400.14/58378","doi":null,"is_oa":true,"landing_page_url":"http://hdl.handle.net/10400.14/58378","pdf_url":null,"source":{"id":"https://openalex.org/S4306402433","display_name":"Portuguese National Funding Agency for Science, Research and Technology (RCAAP Project by FCT)","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"repository"},"license":"other-oa","license_id":"https://openalex.org/licenses/other-oa","version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"working paper"}],"best_oa_location":{"id":"doi:10.26509/frbc-wp-202601","doi":"https://doi.org/10.26509/frbc-wp-202601","is_oa":true,"landing_page_url":"https://doi.org/10.26509/frbc-wp-202601","pdf_url":"https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/working-papers/2026/wp2601.pdf","source":{"id":"https://openalex.org/S4210204369","display_name":"Working paper","issn_l":"2573-7945","issn":["2573-7945","2573-7953"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":"cc-by-nc-nd","license_id":"https://openalex.org/licenses/cc-by-nc-nd","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Working paper (Federal Reserve Bank of Cleveland)","raw_type":"report"},"sustainable_development_goals":[{"id":"https://metadata.un.org/sdg/8","display_name":"Decent work and economic growth","score":1.0},{"id":"https://metadata.un.org/sdg/10","display_name":"Reduced inequalities","score":0.8974000215530396},{"id":"https://metadata.un.org/sdg/1","display_name":"No poverty","score":0.41670000553131104}],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":true,"grobid_xml":true},"content_urls":{"pdf":"https://content.openalex.org/works/W7119644033.pdf","grobid_xml":"https://content.openalex.org/works/W7119644033.grobid-xml"},"referenced_works_count":43,"referenced_works":["https://openalex.org/W1492694029","https://openalex.org/W1601271384","https://openalex.org/W1604323430","https://openalex.org/W1906461530","https://openalex.org/W1959013264","https://openalex.org/W1985470297","https://openalex.org/W2052608005","https://openalex.org/W2079754669","https://openalex.org/W2097916756","https://openalex.org/W2112231177","https://openalex.org/W2116242964","https://openalex.org/W2129907094","https://openalex.org/W2152026477","https://openalex.org/W2152194645","https://openalex.org/W2162670720","https://openalex.org/W2163920208","https://openalex.org/W2170057503","https://openalex.org/W2559605054","https://openalex.org/W2579648655","https://openalex.org/W2736298675","https://openalex.org/W2751149542","https://openalex.org/W2768331393","https://openalex.org/W2785732282","https://openalex.org/W2807611776","https://openalex.org/W2889809566","https://openalex.org/W2891199510","https://openalex.org/W2920937960","https://openalex.org/W2973812772","https://openalex.org/W2999536053","https://openalex.org/W3122471154","https://openalex.org/W3122797087","https://openalex.org/W3122848501","https://openalex.org/W3123089084","https://openalex.org/W3124796732","https://openalex.org/W3125034490","https://openalex.org/W3125451357","https://openalex.org/W3135124437","https://openalex.org/W3157825619","https://openalex.org/W4311650553","https://openalex.org/W4407392791","https://openalex.org/W4407527980","https://openalex.org/W4411682605","https://openalex.org/W6889971591"],"related_works":["https://openalex.org/W4285008287","https://openalex.org/W3123520271","https://openalex.org/W7099473038","https://openalex.org/W1939242581","https://openalex.org/W7097330455","https://openalex.org/W3146822980","https://openalex.org/W3034767167","https://openalex.org/W2373505430","https://openalex.org/W2246181407","https://openalex.org/W3122471154"],"abstract_inverted_index":{"We":[0,47,74],"study":[1],"the":[2,8,17,26,32,50,63,66,72,107,122],"effects":[3,28,119],"of":[4,29,65,125],"trade":[5,30],"liberalization":[6,51],"on":[7,121],"full":[9],"wage":[10,34,53,57,69],"distribution,":[11,35],"exploiting":[12],"Spain's":[13,131],"1993":[14],"entry":[15],"into":[16],"European":[18],"Single":[19],"Market.":[20],"Using":[21],"employer-employee":[22],"data,":[23],"we":[24],"identify":[25],"causal":[27],"across":[31],"entire":[33],"using":[36],"a":[37,126],"novel":[38],"shift-share":[39],"instrument":[40],"embedded":[41],"in":[42],"an":[43,98],"unconditional":[44],"quantile":[45],"regression.":[46],"find":[48],"that":[49,106,116],"reduced":[52],"inequality,":[54],"leading":[55],"to":[56,78],"compression":[58,77],"through":[59],"earnings":[60],"gains":[61],"at":[62,71],"bottom":[64],"distribution":[67],"and":[68,130],"losses":[70],"top.":[73],"trace":[75],"this":[76],"two":[79],"asymmetric":[80],"channels:":[81],"import":[82],"competition":[83],"disproportionately":[84],"harmed":[85],"high":[86],"earners,":[87],"while":[88],"export":[89],"opportunities":[90],"benefited":[91],"low":[92],"earners.":[93],"The":[94],"key":[95,108],"mechanism":[96],"is":[97,115],"import-driven":[99],"\"skill-downgrading.\"":[100],"A":[101],"multi-region":[102],"multi-sector":[103],"model":[104],"shows":[105],"insight":[109],"for":[110],"understanding":[111],"these":[112],"empirical":[113],"results":[114],"trade's":[117],"distributional":[118],"depend":[120],"skill":[123],"intensity":[124],"country's":[127],"tradable":[128],"sector,":[129],"was":[132],"relatively":[133],"low-skill":[134],"intensive":[135],"back":[136],"then.":[137]},"counts_by_year":[],"updated_date":"2026-11-09T13:22:03.289127","created_date":"2026-01-10T00:00:00"}
