Is skill dispersion a source of comparative advantage? While it is established that a country's aggregate endowment of human capital is an important determinant of comparative advantage, this paper investigates whether the distribution of skills in the labor force can play a role in the...

We develop a theory and an empirical strategy to estimate the welfare gains from trade in economies with frictional local labor markets. We obtain a welfare formula that nests several standard market structures and features an additional adjustment margin, via the employment rate. To obtain...

We develop a theory and an empirical strategy to estimate the welfare gains from trade in economies with frictional local labor markets. We obtain a welfare formula that nests previous results and features an additional adjustment margin, via the employment rate. To obtain causal estimates of...