The Skill Bias of the US Trade Deficit

Paolo Epifani and Crinò, Rosario
Authors registered in the RePEc Author Service: Rosario Crino

No 9899, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We propose a theoretical foundation for a link between North-South trade imbalances and skill upgrading. We provide robust support for our theory using a panel of US manufacturing industries observed between 1977 and 2005. Our results suggest that the impact of the US trade deficit on the relative demand for skills within US industries may dominate that of alternative forces of change, such as trade liberalization, offshoring and technical change.

Keywords: North-south trade imbalances; Skill premia; Skill upgrading (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2014-03
New Economics Papers: this item is included in nep-int
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