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Capital Account Opening and Wage Inequality

Mauricio Larrain.

in The Review of Financial Studies

June 2015; p ublished online November 2014 .

Journal Article. Subjects: Wages, Compensation, and Labour Costs; International Finance. 12602 words.

Opening the capital account allows financially constrained firms to raise capital from abroad. Since capital and skilled labor are relative complements, this increases the relative demand...

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