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Labor Heterogeneity and the Pattern of Trade

Cebreros Zurita Carlos Alfonso

No 2018-01, Working Papers from Banco de México

Abstract: This article combines data on trade flows with a novel construction of the distribution of skill in the population, based on the results from the International Adult Literacy Survey of the OECD, to evaluate the empirical importance of the distribution of talent as a determinant of the sectoral pattern of trade. It is found that both the mean and standard deviation of the distribution of skills are significant determinants of the pattern of trade. According to the results, cross-country differences in the distribution of skills explain more of the sectoral pattern of trade than differences in capital stocks and differences in indicators of a country's institutional framework.

Keywords: comparative advantage; labor force composition; factor endowments; human capital (search for similar items in EconPapers)
JEL-codes: F12 F14 F16 J82 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-lab
Date: 2018-01
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