Author(s)

Lingyan Ji

School of Business, Nanjing Normal University, Nanjing, China.

This paper classifies the panel data of 26 manufacturing industries in China from 2003 to 2014 according to different factors intensive industries, and conducts an empirical study on the impact of international trade on the wage gap within the industry by building a dynamic panel data model and using systematic GMM method. The study finds that, as far as the overall manufacturing industry is concerned, international trade will narrow the wage gap within the industry. If international trade is further divided into export trade and import trade, export trade will narrow the wage gap in the manufacturing industry as a whole, narrow the wage gap in labor-intensive industries, and narrow the wage gap in capital-intensive industries whose effect is not significant. However, the import trade will expand the wage gap in the manufacturing industry as a whole, narrow the wage gap in labor-intensive industries, and widen the wage gap in capital-intensive industries whose effect is not significant.

International Trade, Wage Gap, Different Industries of Manufacturing, System GMM

Ji, L. (2019) The Impact of International Trade on Wage Gaps in Different Industries: An Empirical Study Based on China’s Manufacturing Panel Data. Open Journal of Social Sciences, 7, 13-27. doi: 10.4236/jss.2019.73002.