Access the full text.
Sign up today, get DeepDyve free for 14 days.
Arnaud Costinot, Jonathan Vogel (2009)
Matching and Inequality in the World EconomyJournal of Political Economy, 118
David Autor, Lawrence Katz, Melissa Kearney (2006)
The Polarization of the U.S. Labor MarketNBER Working Paper Series
F. Monte (2011)
Skill Bias, Trade, and Wage DispersionPolitical Economy - Development: Comparative Regional Economies eJournal
Andrew, B., Bernard, Stephen, J., Redding, Peter, K., Schott (2011)
MULTIPRODUCT FIRMS AND TRADE LIBERALIZATION∗
J. Eeckhout, Philipp Kircher (2012)
Assortative Matching with Large Firms: Span of Control over More versus Better Workers
J. Abowd, R. Creecy, F. Kramarz (2002)
Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data
G. Faggio, K. Salvanes, J. Reenen (2007)
The Evolution of Inequality in Productivity and Wages: Panel Data EvidenceNBER Working Paper Series
(2007)
Bureau for Research and Economic Analysis of DevelopmentTrade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector
J. Eaton, Samuel Kortum (2002)
Technology, Geography, and TradeEconometrica, 70
A. Bernard, S. Redding, Peter Schott (2006)
Multi-Product Firms and Trade LiberalizationInternational Trade
R. Shimer, Lones Smith (2000)
Assortative Matching and SearchEconometrica, 68
R. Feenstra, Gordon Hanson (1995)
Foreign Investment, Outsourcing and Relative WagesLabor: Supply & Demand
E. Helpman, Oleg Itskhoki, M. Muendler, S. Redding (2012)
Trade and Inequality: From Theory to EstimationNBER Working Paper Series
Ariel Burstein, Jonathan Vogel (2009)
Globalization, Technology, and the Skill Premium
D. Davis, J. Harrigan (2007)
Good Jobs, Bad Jobs, and Trade LiberalizationLabor: Public Policy & Regulation
D. Acemoglu, David Autor (2010)
Skills, Tasks and Technologies: Implications for Employment and EarningsIRPN: Innovation & Stratification (Topic)
P. Manasse, A. Turrini (2001)
Trade, Wages and ´Superstars’Journal of International Economics, 54
M. Sattinger (1979)
DIFFERENTIAL RENTS AND THE DISTRIBUTION OF EARNINGS, 31
M. Sattinger (1975)
Comparative Advantage and the Distributions of Earnings and AbilitiesEconometrica, 43
P. Manasse, A. Turrini (1998)
Trade, Wages and 'Superstars'International Trade
Charles Brown, James Medoff (1989)
The Employer Size-Wage EffectJournal of Political Economy, 97
C. Davidson, S. Matusz, A. Shevchenko (2008)
Globalization and firm level adjustment with imperfect labor marketsJournal of International Economics, 75
F. Ohnsorge, Daniel Trefler (2007)
Sorting It Out: International Trade with Heterogeneous WorkersJournal of Political Economy, 115
Arnaud Costinot (2009)
An Elementary Theory of Comparative AdvantageNBER Working Paper Series
P. Bustos (2007)
Multilateral Trade Liberalization, Exports and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinean Firms
Thorsten Schank, C. Schnabel, J Wagner (2007)
Do exporters really pay higher wages? First evidence from German linked employer-employee dataJournal of International Economics, 72
A. Bernard, J. Jensen, S. Redding, Peter Schott (2006)
Firms in International TradeMcDonough: Strategy [including Economics
Jun-su Han, Runjuan Liu, Junsen Zhang (2012)
Globalization and wage inequality: Evidence from urban ChinaJournal of International Economics, 87
J. Harrigan, Ariell Reshef (2011)
Skill‐Biased Heterogeneous Firms, Trade Liberalization and the Skill Premium (Firmes hétérogènes à différentes intensité d'habileté, libéralisation du commerce, et prime à l'habileté)ERN: Equity
M. Goos, A. Manning, A. Salomons (2009)
Job Polarization in EuropeThe American Economic Review, 99
E. Helpman, Oleg Itskhoki, S. Redding (2009)
Inequality and Unemployment in a Global EconomyEconometrica, 78
Alla Lileeva, Daniel Trefler (2007)
Improved Access to Foreign Markets Raises Plant-Level Productivity ... For Some PlantsIO: Productivity
(2003)
The Skill Content of Recent Technological Change: An Empirical Exploration.
Rafael Melo (2008)
Sorting in the Labor Market: Theory and Measurement
David Autor, Lawrence Katz, Melissa Kearney (2008)
Trends in U.S. Wage Inequality: Revising the RevisionistsThe Review of Economics and Statistics, 90
Rasmus Lentz, D. Mortensen (2010)
Labor Market Models of Worker and Firm HeterogeneityAnnual Review of Economics, 2
M. Amiti, D. Davis (2008)
Trade, Firms, and Wages: Theory and EvidenceLabor: Supply & Demand
Erzo Luttmer (2007)
Selection, Growth, and the Size Distribution of FirmsQuarterly Journal of Economics, 122
P. Goldberg, Nina Pavcnik (2007)
Distributional Effects of Globalization in Developing CountriesDevelopment Economics
P. Bustos (2011)
Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian FirmsThe American Economic Review, 101
Rasmus Lentz (2010)
Sorting by search intensityJ. Econ. Theory, 145
(2010)
Labor Market Rigidities, Trade, and Unemployment
(2004)
Innovating Firms and Aggregate Innovation.
Marc Melitz, E. Helpman, Dalia. Marin, T. Verdier, J. Costantini (2007)
The Dynamics of Firm-Level Adjustment to Trade Liberalization
Derek Neal, S. Rosen (2000)
THEORIES OF THE DISTRIBUTION OF EARNINGSHandbook of Income Distribution, 1
P. Shearer, T. Teng, J. Wang
Zipf Distribution of U . S . Firm Sizes
P. Bustos (2011)
The impact of trade liberalization on skill upgrading. Evidence from Argentina
Ariel Burstein, J. Vogel (2010)
Globalization , Technology , and the Skill Premium : A Quantitative Analysis
F. Vega-Redondo (2007)
Complex Social Networks: Searching in Social Networks
(2009)
107–41. Harvard University Press. Costinot, Arnaud
T. Mayer, Marc Melitz, G. Ottaviano (2013)
NBER WORKING PAPER SERIES MARKET SIZE, COMPETITION, AND THE PRODUCT MIX OF EXPORTERS
(2009)
Firm Heterogeneity and the Labor Market Effects of Trade
A. Bernard, J. Jensen, Robert Lawrence (1995)
Exporters, Jobs, and Wages in U.S. Manufacturing: 1976-1987, 26
A. Atkeson, Ariel Burstein (2007)
Innovation, Firm Dynamics, and International TradeJournal of Political Economy, 118
F. Postel-Vinay, J. Robin (2006)
Microeconometric Search-Matching Models and Matched Employer-Employee Data
S. Yeaple (2005)
A simple model of firm heterogeneity, international trade, and wagesJournal of International Economics, 65
(2003)
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity.
T. Sampson (2016)
Assignment reversals: Trade, skill allocation and wage inequalityJ. Econ. Theory, 163
J. Eeckhout, Philipp Kircher (2011)
Identifying Sorting: In TheoryIZA Institute of Labor Economics Discussion Paper Series
E. Berman, J. Bound, Z. Griliches (1994)
Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of ManufacturesQuarterly Journal of Economics, 109
Erling Barth, A. Bryson, James Davis, R. Freeman (2010)
The Contribution of Dispersion across Plants to the Increase in US Earnings Dispersion 1
(2006)
Offshoring in a Knowledge Economy.
Alessandra Bonfiglioli, Rosario Crinó, G. Gancia (2015)
Betting on Exports: Trade and Endogenous HeterogeneityMicroeconomics: Production
X. Gabaix, Augustin Landier (2006)
Why Has CEO Pay Increased so Much?Organizations & Markets eJournal
Abstract This paper analyzes how intra-industry trade affects the wage distribution when both workers and firms are heterogeneous. Positive assortative matching between worker skill and firm technology generates an employer size-wage premium and an exporter wage premium. Fixed export costs cause the selection of advanced technology, high-skill firms into exporting, and trade shifts the firm technology distribution upwards. Consequently, trade increases skill demand and wage inequality in all countries, both on aggregate and within the upper tail of the wage distribution. This holds when firms receive random technology draws and when technology depends on firm-level R&D. (JEL F16, J23, J24, J31 )
American Economic Journal: Microeconomics – American Economic Association
Published: Aug 1, 2014
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.