Trade theory suggests that increased trade leads to increased wage equality.

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Trade theory, particularly the Stolper-Samuelson theorem within the Heckscher-Ohlin model, suggests that increased trade can lead to increased wage inequality within countries. It posits that trade benefits the abundant factor of production (e.g., skilled labor in developed countries) and can harm the scarce factor (e.g., unskilled labor in developed countries), potentially increasing wage inequality.

Trade Theory Suggests That Increased Trade Leads to Increased Wage