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This paper studies to what extent individuals form their preferences towards trade policies along the lines of the Stolper-Samuelson logic. We employ a novel international survey data set with an extensive coverage of high-, middle-, and low-income countries, address a subtle methodological shortcoming in previous studies and condition on aspects of individualenlightenment. We find statistically significant and economically large Stolper-Samuelson effects. In the United States, being high-skilled increases an individual's probability of favoring free trade by up to twelve percentage points, other things equal. In Ethiopia, the effect amounts to eight percentage points, but in exactly the opposite direction.

This paper intends to show that in the presence of domestic distortions, the factor used intensively in the expanding industry could be worse off even though the real return to the factor in both the expanding industry and the contracting industry is increased. On the other hand, in the presence of domestic distortions, the factor used intensively in the contracting industry could be better off even though the real return to the factor in both the expanding industry and the contracting industry is decreased.

The effect of international trade on personal distribution of wealth and income is examined via the Stolper–Samuelson Theorem. It is shown that free trade between North and South increases (decreases) wealth and income inequality in the North (South). A concept of three classes – lower, middle and upper – is developed. It is shown that North–South free trade in goods leads to a middle class squeeze in the North and a middle class expansion in the South.