| Record ID | marc_loc_updates/v40.i04.records.utf8:18837532:2406 |
| Source | Library of Congress |
| Download Link | /show-records/marc_loc_updates/v40.i04.records.utf8:18837532:2406?format=raw |
LEADER: 02406nam a22002897a 4500
001 2011657504
003 DLC
005 20120117175048.0
007 cr |||||||||||
008 120117s2011 mau sb 000 0 eng
010 $a 2011657504
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aHarrigan, James.
245 10 $aSkill biased heterogeneous firms, trade liberalization, and the skill premium$h[electronic resource] /$cJames Harrigan, Ariell Reshef.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2011.
490 1 $aNBER working paper series ;$vworking paper 17604
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 1/17/2012.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"We propose a theory that rising globalization and rising wage inequality are related because trade liberalization raises the demand for highly competitive skill-intensive firms. In our model, only the lowest-cost firms participate in the global economy exactly along the lines of Melitz (2003). In addition to differing in their productivity, firms in our model differ in their skill intensity. We model skill-biased technology as a correlation between skill intensity and technological acumen, and we estimate this correlation to be large using firm-level data from Chile in 1995. A fall in trade costs leads to both greater trade volumes and an increase in the relative demand for skill, as the lowest-cost/most-skilled firms expand to serve the export market while less skill-intensive non-exporters retrench in the face of increased import competition. This mechanism works regardless of factor endowment differences, so we provide an explanation for why globalization and wage inequality move together in both skill-abundant and skill-scarce countries. In our model countries are net exporters of the services of their abundant factor, but there are no Stolper-Samuelson effects because import competition affects all domestic firms equally"--National Bureau of Economic Research web site.
700 1 $aReshef, Ariell.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 17604.
856 40 $uhttp://www.nber.org/papers/w17604