Ekholm, Karolina; Ulltveit-Moe, Karen-Helene - C.E.P.R. Discussion Papers - 2001
We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the … trade, technology and relative returns to skilled and unskilled labour. Moreover, we show that as market integration … continues and trade costs fall below a certain threshold, the relative return to skilled labour may fall. …