Skills scarcity and export intensity

Author:

Perroni Carlo1,Suverato Davide2ORCID

Affiliation:

1. University of Warwick and CESifo

2. ETH Zürich

Abstract

AbstractWe describe a model of trade with skills‐based product differentiation and non‐proportional trade costs that predicts a positive correlation between firms' export intensity, the price of their exports and the wages they pay to their workers. In equilibrium, firms that employ workers with comparatively scarcer skills export a larger proportion of their output, pay higher wages and charge higher prices. In line with empirical evidence, the model predicts that trade liberalization can cause the distribution of earnings to become more polarized, with patterns that reflect the heterogeneous effects of trade liberalization on firms' export performance.

Publisher

Wiley

Subject

Economics and Econometrics

Cited by 1 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Comparative advantage with many goods: New treatment and results;European Journal of Operational Research;2023-12

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