International Trade, Skill Premium and Endogenous Labor Division: The Case of Mexico

2021 ◽  
pp. 102030
Author(s):  
Seyed Ali Madanizadeh
Keyword(s):  
International Trade ◽  
Skill Premium ◽  
Labor Division ◽  
Endogenous Labor

scholarly journals Changes in Between-Group Inequality: Computers, Occupations, and International Trade

2019 ◽  
Vol 11 (2) ◽  
pp. 348-400 ◽  
Author(s):  
Ariel Burstein ◽  
Eduardo Morales ◽  
Jonathan Vogel
Keyword(s):  
International Trade ◽  
Labor Productivity ◽  
Open Economy ◽  
Skill Premium ◽  
Computer Usage ◽  
And Shifts ◽  
Workforce Composition ◽  
The Impact ◽  
Direct Measures ◽  
Group Inequality

We provide a unifying framework to quantify the impact of several determinants of changes in US between-group inequality. We use an assignment framework with many labor groups, equipment types, and occupations in which changes in inequality are driven by changes in workforce composition, occupation demand, computerization, and labor productivity. We parameterize the model using direct measures of computer usage within labor group-occupation pairs and quantify the impact of each shock for various dimensions of between-group inequality between 1984 and 2003. We find, for example, that computerization and shifts in occupation demand jointly account for roughly 80 percent of the rise in the skill premium, with computerization alone accounting for roughly 60 percent. In an open-economy extension of the model, we show how computerization and changes in occupation demand can be caused by changes in the extent of international trade and perform counterfactual exercises to quantify these effects. (JEL D63, J16, J22, J23, J24, J31)

scholarly journals International Trade, Technology, and the Skill Premium

2017 ◽  
Vol 125 (5) ◽  
pp. 1356-1412 ◽  
Author(s):  
Ariel Burstein ◽  
Jonathan Vogel
Keyword(s):  
International Trade ◽  
Skill Premium

scholarly journals Importing Skill-Biased Technology

2013 ◽  
Vol 5 (2) ◽  
pp. 32-71 ◽  
Author(s):  
Ariel Burstein ◽  
Javier Cravino ◽  
Jonathan Vogel
Keyword(s):  
International Trade ◽  
Small Group ◽  
Skill Premium ◽  
Large Set ◽  
Real Wages ◽  
Large Share ◽  
Capital Equipment ◽  
Analytic Expressions ◽  
Unskilled Workers ◽  
Skilled And Unskilled Workers

The production of capital equipment is concentrated among a small group of countries, and many countries import a large share of their equipment. If capital-skill complementarity is an important feature of technology, international trade may have important effects on the skill premium through its impact on equipment accumulation. In this paper we propose a tractable framework for evaluating this effect, provide simple analytic expressions linking observable changes in import shares by sector to changes in real wages of skilled and unskilled workers (and, therefore, the skill premium), and quantify the importance of this effect for a large set of countries. (JEL E22, F11, F16, J24, L64)

scholarly journals Trade-Induced Structural Change and the Skill Premium

2019 ◽  
Vol 11 (3) ◽  
pp. 289-326 ◽  
Author(s):  
Javier Cravino ◽  
Sebastian Sotelo
Keyword(s):  
International Trade ◽  
Negative Impact ◽  
Real Income ◽  
Skill Premium ◽  
Relative Wage ◽  
Unskilled Labor ◽  
Manufacturing Employment ◽  
Goods And Services ◽  
Trade Model ◽  
Unskilled Workers

We study how international trade affects manufacturing employment and the relative wage of unskilled workers when goods and services are traded with different intensities. Manufacturing trade reduces manufacturing prices worldwide, which reduces manufacturing employment if manufactures and services are complements. International trade also raises real income, which reduces manufacturing employment if services are more income elastic than manufactures. Manufacturing production is unskilled-labor-intensive, so that these changes increase the skill premium. We incorporate these mechanisms in a quantitative trade model and show that reductions in trade costs had a negative impact on manufacturing employment and the relative wage of unskilled workers. (JEL F16, J24, J31, L60)

scholarly journals Endogenous labor supply and international trade

2017 ◽  
Vol 13 (1) ◽  
pp. 73-94 ◽  
Author(s):  
Takanori Ago ◽  
Tadashi Morita ◽  
Takatoshi Tabuchi ◽  
Kazuhiro Yamamoto
Keyword(s):  
International Trade ◽  
Labor Supply ◽  
Endogenous Labor Supply ◽  
Endogenous Labor

Internal Geography, Labor Mobility, and the Distributional Impacts of Trade

2019 ◽  
Vol 11 (3) ◽  
pp. 252-288 ◽  
Author(s):  
Jingting Fan
Keyword(s):  
International Trade ◽  
Skill Premium ◽  
Domestic Economy ◽  
Spatial Equilibrium ◽  
Spatial Equilibrium Model ◽  
Unskilled Workers ◽  
And Migration ◽  
Migration Costs ◽  
Skilled And Unskilled Workers ◽  
Distributional Impacts

I develop a spatial-equilibrium model to quantify the distributional impacts of international trade in an economy with intranational trade and migration costs. Focusing on China, I find that international trade increases both between-region inequality among workers with similar skills and within-region inequality between skilled and unskilled workers, with the former accounting for 75 percent of the overall inequality increase. Ignoring spatial frictions will underestimate trade’s impact on the overall inequality and overestimate its impact on the aggregate skill premium. I further study how internal trade and Hukou reforms affect the domestic economy and the impacts of international trade. (JEL F14, F16, J24, O18, P23, P33, R12)

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