On Globalization and the Concentration of Talent

Ulrich Schetter and Oriol Tejada

No 121a, CID Working Papers from Center for International Development at Harvard University

Abstract: We analyze how globalization affects the allocation of talent across competing teams in large matching markets. Assuming a reduced form of globalization as a convex transformation of payoffs, we show that for every economy where positive assortative matching is an equilibrium without globalization, it is also an equilibrium with globalization. Moreover, for some economies positive assortative matching is an equilibrium with globalization but not without. The result that globalization promotes the concentration of talent holds under very minimal restrictions on how individual skills translate into team skills and on how team skills translate into competition outcomes. Our analysis covers many interesting special cases, including simple extensions of Rosen (1981) and Melitz (2003) with competing teams.

Keywords: competing teams; globalization; inequality; matching (search for similar items in EconPapers)
JEL-codes: C78 D3 D4 F61 F66 (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-bec, nep-cdm, nep-gth, nep-int and nep-spo
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https://growthlab.cid.harvard.edu/files/growthlab/ ... revised-oct-2020.pdf (application/pdf)

Related works:
Working Paper: On Globalization and the Concentration of Talent (2019)
Working Paper: Globalization and the Concentration of Talent (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:cid:wpfacu:121a

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