Specialization in Trade Protects US Workers from Income Inequality Spike
The article shows that countries with different resources specialize in making different things, which can affect income inequality. Previous studies didn't consider this specialization, leading to unclear results. When we account for this, we see more support for the idea that countries specialize in what they're good at. In 1990, the US had enough capital to make different products than countries with low wages, which helped protect US workers from losing jobs due to cheap imports.