01629cas a2200241 a 4500 AALejournalIMF006887 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455210862 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. A Noteon Terms of Trade Shocks and the Wage Gap. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using Chilean data, we document that for resource-rich small open economies the effects of terms of trade shocks on the wage gap (between skilled and unskilled workers) depend on factor intensities in the non-tradable sector, following the model in Galiani, Heymann, and Magud (2010). For a skilled-intensive non-tradable sector we show that improvements in the terms of trade benefit skilled workers. We also show that this relation holds at the industry level: the wage gap widens in skilled-intensive sectors while it shrinks in unskilled-intensive ones, the more so as terms of trade volatility decreases. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2010/279 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/279/001.2010.issue-279-en.xml IMF e-Library