Heterogeneous workers and international trade

Gene Grossman

Review of World Economics (Weltwirtschaftliches Archiv), 2013, vol. 149, issue 2, 245 pages

Abstract: In this paper, I survey the recent theoretical literature that incorporates heterogeneous labor into models of international trade. The models with heterogeneous labor have been used to study how talent dispersion can be a source of comparative advantage, how the opening of trade affects the full distribution of wages, and how trade affects industry productivity and efficiency via its impact on sorting and matching in the labor market. Some of the most recent contributions also introduce labor market frictions to study the effects of trade on structural unemployment and on mismatch between workers and firms. Copyright Kiel Institute 2013

Keywords: Heterogeneous labor; Matching; Sorting; Productivity; Wage distribution; International trade; F11; F16 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (31)

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Working Paper: Heterogeneous Workers and International Trade (2013)
Working Paper: Heterogeneous Workers and International Trade (2013)
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DOI: 10.1007/s10290-013-0152-7

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