I was reading a book that asked this question. "Does trade with low-wage countries depress wage rates in high-wage countries?"Why did they mention specifically low-high wages countries?
They mention low-high wages countries due to the following common narrative on trade and inequality:
- Globalization allowed low-wage countries to export more labor intensive goods to high-wage countries.
- Less skilled workers in those high-wage countries faced import competition and lost their jobs.
- Bottoming out of the middle class and rise in inequality.
- Leading to a backlash against globalization.
This common narrative suggests development of low-wage countries has come at the expense of low skilled workers in high-wage countries. This narrative has been investigated in many papers and surely in your book!