It can be theoretically shown that variety trade can be a possible source of increased skill premium in wages. No past studies, however, have empirically quanti ed how much of the increase in skill premium can be accounted for by the increase in variety trade. This paper now formulates a static...

This paper develops a simple model that provides a unified explanation of the increased skewness of wage income distribution based on differences in flexibility of skills--modeled as differences in the setup costs required to combine/perform a given number of tasks. Our numerical experiments in...

It can be theoretically shown that imports of new foreign varieties--an increase in the extensive margin of imports--can be a possible channel for increased skill premium in wages. No past studies, however, have quantified how much of the increase in skill premium can be accounted for by the...

It can be theoretically shown that variety trade can be a possible source of increased skill premium in wages. No past studies, however, have empirically quantified how much of the increase in skill premium can be accounted for by the increase in variety trade. This paper now formulates a static...