Is a skill intensity reversal a mere theoretical curiosum? Evidence from the US and Mexico

► A rising skill premium in two countries can be explained by the Heckscher-Ohlin model assuming a “skill intensity reversal”. ► This assumption, however, poses an empirical challenge since past research has found little evidence for the so-called “factor intensity reversal”. ► We now show clear-cut evidence. ► US net exports to Mexico of the electronics products-relatively high-skill intensive compared to the non-electronics products within the US but relatively low-skill intensive within Mexico-increased from 1994 to 2000. ► The skill premium also increased in both countries.