Date of Conferral

2023

Degree

Ph.D.

School

Public Policy and Administration

Advisor

Christopher Atkinson

Abstract

Little is known about the impact trade openness has on income inequality in developed nations. Researchers have demonstrated that income inequality and globalization largely benefit underdeveloped nations. However, there is little research that exists on developed countries such as the United States. The purpose of this quantitative study was to compare similarities between trade liberalization and income inequality among manufacturing workers in the automotive industry, specifically in the United States. This study was framed using the Heckscher–Ohlin theory. The study attempted to determine how trade liberalization has affected income inequality among the automotive industry in places such as Detroit, specifically as it has impacted automotive manufacturing workers in the last two decades. Additionally, trade agreements were explored, such as the North American Free Trade Agreement/United States-Mexico-Canada Agreement, which led to increased income inequality among automotive manufacturing workers in the automotive industry. The study used secondary data publicly available and considered national- and state-level census data over a period of time to compose the sample. Correlational methods were used to measure more than two variables to determine if there was any relationship. Results demonstrated that both total import consumption values and NAFTA import consumption values increased over the sample period of 21 years, there was a negative correlation between mean weekly wages and imports for consumption, and increasing NAFTA imports did have a negative impact on the wages of automotive manufacturing workers. These results may effect positive social change and offer solutions that minimize income disparities across a formerly bustling Rust Belt.

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