Frankel and Romer (1999) proposed an instrument variable for trade intensity to robustly assess the causal impact of … international trade on standards of living. The instrument is based on OLS estimates of the gravity equation and has been widely … with trade, suggesting that what is captured may be a direct link between geography and income. …

We perform a granular analysis of Swedish labor market dynamics, using matched employer employee and firm level trade … data for Sweden over a 15-year period. The employment share in firms that are directly exposed to international trade has …