Motivation -- International trade and unemployment - the worker-selection effect -- Unemployment benefits as redistribution scheme for trade gains- a positive analysis -- An optimal redistribution scheme for trade gains.

This study investigates the impact of openness on human capital in 112 countries worldwide in 2000-2019. An two-stage least square fixed-effect model with instrumental variables is used to unravel the complicated relationship between human capital and its key determinants. The empirical results...