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Trade and the distribution of human capital

Spiros Bougheas and Raymond Riezman

Chapter 20 in International Trade Agreements and Political Economy, 2013, pp 395-407 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractWe develop a two-country, two-sector model of trade where the only difference between the two countries is their distribution of human capital endowments. We show that even if the two countries have identical aggregate human capital endowments the pattern of trade depends on the properties of the two human capital distributions. We also show that the two distributions of endowments also completely determine the effects of trade on income inequality. We also look at a simple majority voting model. It turns out autarky and free trade with and without compensation may be the voting outcome.

Keywords: International Trade; Political Economy; Theory of International Free Trade Agreements; Customs Unions; Tariff Dynamics; Storable Votes (search for similar items in EconPapers)
Date: 2013
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Related works:
Journal Article: Trade and the distribution of human capital (2007) Downloads
Working Paper: Trade and the Distribution of Human Capital (2005) Downloads
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