) the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation …"In this paper we develop a theory of how factors interact at the plant level. The theory has implications for (1) the … micro foundations for capital-skill complementarity, (2) the relationship between factor allocation and plant size, and (3 …

) the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation …In this paper we develop a theory of how factors interact at the plant level. The theory has implications for: (1) the … micro foundations for capital skill complementarity (2) the relationship between factor allocation and plant size and (3 …

) the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation …In this paper we develop a theory of how factors interact at the plant level. The theory has implications for: (1) the … micro foundations for capital skill complementarity (2) the relationship between factor allocation and plant size and (3 …

labor frictions. Under standard assumptions, theory always implies a motononic negative link between capital-labor ratios …