Variety Trade and Skill Premium in a Calibrated General Equilibrium Model: The Case of Mexico

Manoj Atolia () and Yoshinori Kurokawa

No wp2008_11_03, Working Papers from Department of Economics, Florida State University

Abstract: 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 general equilibrium model and then calibrates it to the Mexican input-output matrix for 1987. In the calibrated model, our numerical experiments show that the increase in U.S.-Mexican variety trade can explain approximately 12 percent of the actual increase in skill premium in Mexico from 1987 to 2000.

Keywords: Variety Trade; Skill Premium; Variety-Skill Complementarity; Calibrated General Equilibrium Model; Mexico (search for similar items in EconPapers)
JEL-codes: F12 F16 (search for similar items in EconPapers)
Pages: 33
Date: 2008-10
New Economics Papers: this item is included in nep-cmp, nep-dev and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://coss.fsu.edu/econpapers/wpaper/wp2008_11_03.pdf First version, 2008-10 (application/pdf)

Related works:
Journal Article: The impact of trade margins on the skill premium: Evidence from Mexico (2016)
Working Paper: Import Variety and Skill Premium in a Calibrated General Equilibrium Model: The Case of Mexico (2009)
Working Paper: Variety Trade and Skill Premium in a Calibrated General Equilibrium Model: The Case of Mexico (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fsu:wpaper:wp2008_11_03

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Department of Economics, Florida State University Contact information at EDIRC.
Bibliographic data for series maintained by Luke Rodgers ().