[PDF] Heterogeneous Workers And International Trade eBook

Author : Gene M. Grossman
Publisher :
Page : 35 pages
File Size : 43,72 MB
Release : 2013
Category : Economics
ISBN :

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In this paper, I survey the recent theoretical literature that incorporates heterogeneous labor into models of international trade. The models with heterogeneous labor have been used to study how talent dispersion can be a source of comparative advantage, how the opening of trade affects the full distribution of wages, and how trade affects industry productivity and efficiency via its impact on sorting and matching in the labor market. Some of the most recent contributions also introduce labor market frictions to study the effects of trade on structural unemployment and on mismatch between workers and firms.

Author : Franziska Ohnsorge
Publisher :
Page : 0 pages
File Size : 12,74 MB
Release : 2007
Category :
ISBN :

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Each worker brings a bundle of skills to the workplace, for example, quantitative and communication skills. Since employers must take this bundle as a package deal, they choose workers with just the right mix of skills. We show that international differences in the distribution of worker skill bundles - for example, Japan's abundance of workers with a modest mix of both quantitative and teamwork skills - have important implications for international trade, industrial structure, and domestic income distribution. Formally, we model two-dimensional worker heterogeneity and show that the second moments of the distribution of skills are critical, as in the Roy model.

Author : Franziska Ohnsorge
Publisher :
Page : 48 pages
File Size : 23,87 MB
Release : 2004
Category : Industrial productivity
ISBN :

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The two models of international trade with developed factor markets -- Heckscher-Ohlin and Specific Factors -- both suffer significant defects. For example, their predictions about the patterns of domestic production and international trade are for the most part either indeterminate or uselessly complex. The problem with these models is that the supply of factors to an industry is either perfectly elastic or perfectly inelastic. Using a model in which heterogeneous workers sort across industries we eliminate this problem. The result is a multi-good model with sharp predictions about (1) the domestic pattern of production, (2) North-North and North-South trade, (3) the demand for protection, (4) the determinants of domestic income distribution, and (5) the effect of trade on economic development.

Author : Andrew B. Bernard
Publisher :
Page : 0 pages
File Size : 15,97 MB
Release : 2006
Category :
ISBN :

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This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations' responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. These reallocations generate substantial job turnover in all sectors, spur relatively more creative destruction in comparative advantage industries than comparative disadvantage industries, and magnify ex ante comparative advantage to create additional welfare gains from trade. The relative ascendance of high-productivity firms within industries boosts aggregate productivity and drives down consumer prices. In contrast with the neoclassical model, these price declines dampen and can even reverse the real wage losses of scarce factors as countries liberalize.

Author : Inga Heiland
Publisher :
Page : pages
File Size : 12,40 MB
Release : 2018
Category :
ISBN :

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We develop a model that combines monopolistic competition on goods markets with skill-type heterogeneity on the labor market to analyze the effects of trade and migration on welfare and inequality. Skill-type heterogeneity and partial specificity to firms' endogenously chosen skill requirements lead to endogenous worker-firm match quality, endogenous wage markups, and within-firm wage inequality. We identify novel effects of trade and migration. Trade enhances firms' monopsony power on the labor market and worsens the average quality of worker-firm matches, but the gains from trade theorem survives. Integration of labor markets leads to two-way migration between symmetric countries. Migration enhances competitiveness on the labor market and tends to increase the average quality of worker-firm matches. Trade and migration are complements. Our model clearly advocates opening up labor markets simultaneously with trade liberalization.

Author : Joachim Wagner
Publisher : World Scientific
Page : 549 pages
File Size : 36,32 MB
Release : 2016-06-21
Category : Business & Economics
ISBN : 981310970X

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This volume brings together two comprehensive survey studies of the literature on the microeconometrics of international trade. The chapters apply new empirical methods to the analysis of the links between international trade and various dimensions of firm performance such as productivity, profitability, wages, and survival. The studies also include report results for Germany, one of the leading actors on the world markets for goods and services.

Author : Mary Amiti
Publisher : International Monetary Fund
Page : 34 pages
File Size : 36,64 MB
Release : 2004-06
Category : Business & Economics
ISBN :

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We show in the context of a new economic geography model that when labor is heterogenous trade liberalization may lead to industrial agglomeration and interregional trade. Labor heterogeneity gives local monopoly power to firms but also introduces variations in the quality of the job match. Matches are likely to be better when there are more firms and workers in the local market, giving rise to an agglomeration force that can offset the forces against trade costs and the erosion of monopoly power. We derive analytically a robust agglomeration equilibrium and illustrate its properties with numerical simulations.