Trade, non-homothetic preferences, and the impact of country size on wages

•We examine the impact of country size on wages under non-homothetic preferences.•We consider two cases with one representative consumer and many identical consumers.•The results are different from the case with CES preferences.•The advantage of larger country size is not always guaranteed.•The two cases lead to very different results.

We show that the larger country does not always get the higher wage in a trade model with non-homothetic preferences. The cases of one representative consumer and many identical consumers yield different results.