The Exporter Wage Premium When Firms and Workers are Heterogeneous ∗

Abstract

We set up a trade model with heterogeneous firms and a worker population that is heterogeneous in two dimensions: workers are either skilled or unskilled, and within each skill category there is a continuum of abilities. Workers with high abilities, both skilled and unskilled, are matched to firms with high productivities, and this generates wage… (More)

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