1: Introduction.- I Evidence and the Debate.- 2: Wages and Employment.- 2.1 Country Experiences.- 2.2 The Wage-Gap Debate: Trade or Technology?.- 2.3 Issues: What Do We Need to Address?.- II Explaining Symmetric Wage-Gap.- 3: The Standard Trade Theory:How Far Does It Go?.- 3.1 Introduction.- 3.2 Trade and Income Distribution in the HOS Model.- 3.3 Specific-Factor Model of Trade and Income Distribution.- 3.4 Conclusion.- 4: Trade Liberalization and Symmetric Wage-Gap.- 4.1 Two Cases.- 4.2 Generalized HOS Model,Trade Pattern and the Wage-Gap.- 4.3 Local Factor Abundance andAsymmetric Changes in Wages in the South.- 4.4 Rigid-Wage Specific-Factor Model.- 4.5 Conclusion.- 5: Input Trade: An Alternative Explanation.- 5.1 Introduction.- 5.2 Trade in Intermediate Products.- 5.3 Factor Mobility: How Far Does It Explain?.- 5.4 Conclusion.- III Trade, Capital Flow and Employment.- 6: Liberalization and Employmentin the Organized Sector.- 6.1 Introduction.- 6.2 The Existing Literature.- 6.3 Tariff, Foreign Investment andEmployment in a Dual Economy.- 6.4 General Equilibrium Analyses of Unemployment.- 6.5 Employment and Welfare.- 6.6 Conclusion.- IV Trade Liberalization, Wage Inequality and Employment in the South.- 7: Diverse Trade Pattern,Complementarity and Fragmentation.- 7.1 Diverse Trade Pattern of Southern Countries.- 7.2 Complementarity and the Wage-Gap.- 7.3 Liberalization and Employment.- 7.4 Fragmentation and the Wage-Gap.- 7.5 Terms of Trade, Fragmentationand Wage Inequality.- 7.6 Conclusion.- 8: Segmented Input Marketsand Non-Traded Good.- 8.2 Informal Capital Marketand Restricted Capital Mobility.- 8.3 Role of the Non-Traded Good.- 8.4 Conclusion.- 9: Trade, Skill Formation and the Wage-Gap.- 9.1 Introduction.- 9.2 Skill Differentiation, Underemploymentand Wage Inequality.- 9.3 Skill Formation and Wage Inequality.- 9.4 Conclusion.- 10: Conclusion.- List of Figures.- List of Tables.