Skill Dispersion and Trade Flows

  title={Skill Dispersion and Trade Flows},
  author={Matilde Bombardini and Giovanni Gallipoli and Germ{\'a}n Pupato},
Is skill dispersion a source of comparative advantage? In this paper we use microdata from the International Adult Literacy Survey to show that the e¤ect of skill dispersion on trade ‡ows is quantitatively similar to that of the aggregate endowment of human capital. In particular we investigate, and …nd support for, the hypothesis that countries with a more dispersed skill distribution specialize in industries characterized by lower complementarity of workers’ skills. The result is robust to… CONTINUE READING
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