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Income Inequality: The Heckscher-Olin Model

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Income Inequality: The Heckscher-Olin Model
The Heckscher-Olin model is based around the idea that traded commodities are essentially bundles of factors; land, labour and capital. The trade of commodities internationally is consequently indirect factor arbitrage.
Income inequality has undoubtedly risen since the 1970’s. When comparing two males in the 90th percentile and 10th percentile in 1970 in regards to wage distribution, there was a difference in earnings for the higher wage earner of 3.2 times the amount lower worker’s income. By 2010, the same comparison shows an increase to 5.2 times higher wages for the worker in the 90th percentile than the worker in the 10th percentile. A similar trend can be seen for women also.
Many attribute the rising income inequality to differences
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