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In an economy with imperfect labor contracts, differences in the distribution of talent can be an independent source of comparative advantage. I study a world economy with two activities, one in which an individual's contribution to production can be measured accurately and another in which...
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. The general equilibrium has the least talented individuals entering the team sector, while the most talented opt to work … team sector. …
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. The general equilibrium has the least talented individuals entering the team sector, while the most talented opt to work … team sector. …
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