Caron, Justin; Fally, Thibault; Markusen, James R. - 2017
trade). Here, we add a role for income-dependent demand interacted with factor intensities in production. We explore how … income growth and trade liberalization inuence the demand for skilled labor when preferences are non-homothetic and income … skill premium of more than 10%. In a second experiment, we show that trade cost reductions generate quantitatively very …