We describe a model of trade with input based product differentiation and non-proportional trade costs that is capable of predicting a positive correlation between firms' export intensity, the price of their exports, and the wages they pay to their workers. These correlations arise in the model...

We describe a model of trade with input based product differentiation and non-proportional trade costs that is capable of predicting a positive correlation between firms' export intensity, the price of their exports, and the wages they pay to their workers. These correlations arise in the model...

This report critically analyses the paper "A Simple Model of Firm Heterogeneity, International Trade and Wages' authored by, Stephen Ross Yeaple. Yeaple (2005) introduces a static model in which ex-ante homogeneous firms are differentiated based on heterogeneity in technology adoption and skill...

Building on the canonical model of skill-biased technical change to incorporate differential effects of technology and international trade on the skill composition of occupations, the paper employs a task-based approach to analyze structural changes in regional employment within a rich...

Over the last decades, productivity in the tradable sector rose substantially, while in the non-tradable sector, output per worker has remained the same, despite a similar increase in human capital in both sectors. This paper emphasizes that duality in higher education as well as heterogeneous...

This paper sets up a heterogeneous firms model, where production consists of a continuum of tasks that differ in complexity. Firms hire low-skilled and high-skilled workers to perform these tasks. How firms assign workers to tasks depends on factor prices for the two skill types and the...

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...

The scarcity of talent is a tremendous challenge for firms in the globalized world. This paper investigates the role of labor market imperfection in open economies for the usage of talent in the production process of firms. For this purpose, I set up a heterogeneous firms model, where production...

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...

This paper is concerned about addressing a question that has become critical in international trade, during the past three decades: "What factors explain the worldwide increase in skill premiums following international trade integration and increasingly globalized economies"? I propose a new...