English, Article, Journal or magazine article edition: Skill Dispersion and Trade Flows Germán Pupato; Matilde Bombardini; Giovanni Gallipoli; ...

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Bookmark: http://trove.nla.gov.au/version/25480
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Skill Dispersion and Trade Flows
Author
  • Germán Pupato
  • Matilde Bombardini
  • Giovanni Gallipoli
  • Germán Pupato
Physical Description
  • preprint
Notes
  • Is skill dispersion a source of comparative advantage? While it is established that a country's aggregate endowment of human capital is an important determinant of comparative advantage, this paper investigates whether the distribution of skills in the labor force can play a role in the determination of trade flows. We develop a multi-country, multi-sector model of trade in which comparative advantage derives from (i) differences across sectors in the complementarity of workers' skills, (ii) the dispersion of skills in the working population. First, we show how higher dispersion in human capital can trigger specialization in sectors characterized by higher substitutability among workers' skills. We then use industry-level bilateral trade data to show that human capital dispersion, as measured by a standard international metric, has a significant effect on trade flows. We find that the effect is of a magnitude comparable to that of aggregate endowments. The result is robust to the introduction of several controls for other proximate causes of comparative advantage.
  • RePEc:nbr:nberwo:15097
  • Is skill dispersion a source of comparative advantage? While it is established that a country's aggregate endowment of human capital is an important determinant of comparative advantage, this paper investigates whether the distribution of skills in the labor force can play a role in the determination of trade flows. We develop a multi-country, multi-sector model of trade in which comparative advantage derives from (i) differences across sectors in the complementarity of workers' skills, (ii) the dispersion of skills in the working population. First, we show how higher dispersion in human capital can trigger specialization in sectors characterized by higher substitutability among workers' skills. We then use industry-level bilateral trade data to show that human capital dispersion, as measured by a standard international metric, has a signi…cant effect on trade flows. We …nd that the effect is of a magnitude comparable to that of aggregate endowments. The result is robust to the introduction of several controls for other proximate causes of comparative advantage
  • RePEc:rim:rimwps:wp20_09
Language
  • English
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