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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...
Persistent link: https://www.econbiz.de/10011543995
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...
Persistent link: https://www.econbiz.de/10011454004
We examine the direct impact of idiosyncratic match quality on entry wages and job mobility using unique data on worker talents matched to job-indicators and individual wages. Tenured workers are clustered in jobs with high job-specific returns to their types of talents. We therefore measure...
Persistent link: https://www.econbiz.de/10011408194
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...
Persistent link: https://www.econbiz.de/10012057313
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...
Persistent link: https://www.econbiz.de/10014437560
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...
Persistent link: https://www.econbiz.de/10011401281
motivate a high-quality workforce. An exchange-rate devaluation leads initially more-productive, higher-wage plants to increase …
Persistent link: https://www.econbiz.de/10003591494
strategy exploits the 1992 devaluation of the Italian Lira, which represented a large and unforeseen shock to Italian firms … skills command a higher price after the devaluation - the "skill composition" effect. The latter effect only emerges once we … allow for the value of individual skills to differ in the pre- and post-devaluation periods. In fact, using a fixed measure …
Persistent link: https://www.econbiz.de/10009535805
In this paper, we use a Micro-Macro model to evaluate the effects of a euro's depreciation on the French economy, both at the macro and micro level. Our Micro-Macro model consists of a Microsimulation model that includes an arithmetical model for the French fiscal system and two behavioral...
Persistent link: https://www.econbiz.de/10011738884
We document dramatic rising wages in China for the period 1978-2007 based on multiple sources of aggregate statistics. Although real wages increased seven-fold during the period, growth was uneven across ownership types, industries and regions. Since the late 1990s, the wages of state-owned...
Persistent link: https://www.econbiz.de/10003976837