tasks or produce two imperfectly substitutable goods. Technology is assumed to take a factor-augmenting form, which, by …

In a two-cone Heckscher-Ohlin model with CES preferences and a continuum of goods, adding new goods to the North …'s technology necessarily increases the Northern skill premium if the new goods are skilled-labor intensive, but may even increase … the premium if they are unskilled-labor intensive. Thus, the introduction of new goods into US technology could have done …