Publication

This paper evaluates the information contained in trade prices and assesses what this contributes to the understanding of the impact of globalization. The paper commences by reviewing the evidence regarding movements in relative producer prices and import prices between 1970 and 2000. The authors then analyze the tariff line trade data and discuss the implications of the information contained in these data for the debate over the role of trade in increasing inequality between skilled and unskilled workers in Europe and North America. The final section presents a number of conclusions.