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Trade Liberalization, Pollution Tax, Skilled Immigration, and Wage Inequality

Shang‐Fen Wu & Cheng‐Te Lee

Bulletin of Economic Research2026https://doi.org/10.1111/boer.70045article
AJG 2ABDC B
Weight
0.50

Abstract

This paper constructs a three‐sector Harris–Todaro model to analyze the impact of trade liberalization and the pollution tax on urban unemployment and wage inequality. We find that trade liberalization reduces the urban unemployment rate and alleviates skilled–unskilled wage inequality. Additionally, we show that an increase in the pollution tax raises the urban unemployment rate and widens skilled–unskilled wage inequality. Finally, we demonstrate that a rise in skilled immigration raises the urban unemployment rate and exacerbates skilled–unskilled wage inequality.

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https://doi.org/https://doi.org/10.1111/boer.70045

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@article{shang‐fen2026,
  title        = {{Trade Liberalization, Pollution Tax, Skilled Immigration, and Wage Inequality}},
  author       = {Shang‐Fen Wu & Cheng‐Te Lee},
  journal      = {Bulletin of Economic Research},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/boer.70045},
}

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Trade Liberalization, Pollution Tax, Skilled Immigration, and Wage Inequality

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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