Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting … wages reflect this, with lower pay for greater uncertainty. We use the dispersion of exam grades within a field of education … as an indicator of the unobserved heterogeneity that employers face. We find solid evidence that starting wages are lower …

We depart from the trade and wages literature and its emphasis on North-South trade, examining North-North by … developing the basic linkages between trade-based integration and relative wages in an Ethier-type division of labor model. Using … this model we identify a formal relationship between international trade, productivity, and wages. We then examine the …