We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard … trade liberalization. While the former leads to more dispersion of economic activity across space, the latter tends to drive …

The aim of this paper is to formalise a two-country model of trade liberalisation and technical change with … production we allow for comparative advantages and study the trade and technology effects within and between sectors on wages and … employment of skilled and low-skilled workers. Technical change together with inter-sectoral trade has distributional …

. Whereas trade does not affect the firm-internal assignment of workers to tasks in a setting with fully flexible wages, it … consequences for firm-level productivity, if low-skilled wages are fixed by a minimum wage. In this case, trade leads to higher per …