International Trade , Technology , and the Skill Premium ∗

@inproceedings{Burstein2012InternationalT,
  title={International Trade , Technology , and the Skill Premium ∗},
  author={Ariel Burstein and Jonathan P. Vogel},
  year={2012}
}
What are the consequences of international trade on the wage of college relative to non-college workers (the skill premium)? We incorporate skill intensity differences across firms and sectors and skill abundance differences across countries into an otherwise standard Ricardian model of international trade. In our model, reductions in trade costs reallocate factors towards a country’s comparative advantage sectors, increasing the skill premium in countries with a comparative advantage in… CONTINUE READING
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