A paradox seems to emerge about the extraordinary Chilean growth performance during the last two decades. Indeed, the export-led growth model was based on the export of natural resource based products characterized by low-income elasticity of demand while the productive structure was suffering a...

This paper addresses the role of mobility costs in shaping the effects of trade integration on wage inequality and welfare. We present a three-factor, two-sector model in which the production technology exhibits capital-skill complementarity and the cost of moving across sectors differs between...