The division of labor between and within countries is driven by two fundamental forces, comparative advantage and increasing returns. We set up a simple Ricardian model with a Marshallian input sharing mechanism to study their interplay. The key insight that emerges is that the interaction...

Do migrants shape the dynamic comparative advantage of their sending and receiving countries? To answer this question we study the drivers of knowledge diffusion by looking at the dynamics of the export basket of countries, with particular focus on migration. The fact that knowledge diffusion...

The family investment hypothesis predicts that credit-constrained immigrant families adopt a household strategy for financing post-migration human capital investment in which the partner with labor market comparative advantage engages in investment activities and the other partner undertakes...

Much research shows that students take account of their perceived comparative advantage in mathematics relative to verbal skills when choosing college majors and career tracks. There is also evidence for an important role for comparative advantage in explaining the gender gap in college STEM...

Gender differences in math performance are now small in developed countries and they cannot explain on their own the strong under-representation of women in math-related fields. This latter result is however no longer true once gender differences in reading performance are also taken into...