This paper classifies the panel data of 26 manufacturing industries in China\nfrom 2003 to 2014 according to different factors intensive industries, and\nconducts an empirical study on the impact of international trade on the wage\ngap within the industry by building a dynamic panel data model and using\nsystematic GMM method. The study finds that, as far as the overall manufacturing\nindustry is concerned, international trade will narrow the wage gap\nwithin the industry. If international trade is further divided into export trade\nand import trade, export trade will narrow the wage gap in the manufacturing\nindustry as a whole, narrow the wage gap in labor-intensive industries, and\nnarrow the wage gap in capital-intensive industries whose effect is not significant.\nHowever, the import trade will expand the wage gap in the manufacturing\nindustry as a whole, narrow the wage gap in labor-intensive industries,\nand widen the wage gap in capital-intensive industries whose effect is not significant.
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