| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 962986 | Journal of International Economics | 2013 | 15 Pages |
Abstract
⺠We develop a model of trade liberalization with optimal talent allocation. ⺠Trade affects occupational choices by affecting agents' participation and credit constraints. ⺠This triggers a compositional change in the skilled and unskilled labor force. ⺠We show that trade may increase the skill premium in a skillâscarce country. ⺠This can help explaining the impact of trade on wage inequality in the 1980s and 1990s.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Roberto Bonfatti, Maitreesh Ghatak,