How does free trade affect workers in developing countries? Economic theory tells us that developing country firms will respond to free trade by shifting production towards the abundant pool of low-skilled labor. Yet since Chile's economic opening in 1974, income inequality has increased, calling into question the benefits of free trade for low-skilled workers. Through in-depth case studies of two Chilean industries, Berg explores this conundrum, considering influences such as the changing strategies of multinational firms, increased competition, technological change, and labor relations. Berg argues that heightened international competition has forced Chilean firms to drop their prices to retain market share, lowering profits. To compensate for the drop in profits, Chilean firms have instituted numerical and wage flexibility policies available to them as a result of the weak institutional environment that has existed in the country since the military coup of September 1973. The suppression of wages has been directed at low-skilled workers, who are poorly organized and easily replaceable. "" "Miracle for Whom?" offers a fresh and insightful perspective to the debate on rising income inequality in Chile, and on the broader question of how free trade affects the demand for workers in developing countries.