International trade exacerbates domestic income inequality, at least in some circumstances, according to an empirical study that two MIT economists helped co-author. The research, focusing on Ecuador as a case study, digs into individual-level income data while examining in close detail the connections between Ecuador’s economy and international trade. The study finds that trade generates income gains that are about 7 percent greater for those at the 90th income percentile, compared to those of median income, and up to 11 percent greater for the top percentile of income in Ecuador….
