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Online exports and the wage gap

The reduction in the cost of exporting offered by international transactions over the internet helps small firms in developing countries reach consumers all over the world. This column argues that this bias in favour of small firms has an impact on labour markets, as small firms tend to hire unskilled workers disproportionately. By levelling the playing field between small and large firms in terms of access to international markets, online trade can contribute to reducing wage and, ultimately, income inequality.
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