Skill Intensity Reversal and the Rising Skill Premium: Evidence from the U.S. and Mexico

Yoshinori Kurokawa

MPRA Paper from University Library of Munich, Germany

Abstract: Rising skill premium in two countries can be explained simply by the Heckscher-Ohlin model assuming a “skill intensity reversal.” This assumption, however, poses an empirical challenge since past research has found little evidence for the so-called “factor intensity reversal.” We now show clear-cut evidence: U.S. net exports to Mexico of electronics products, which were high-skill intensive in the U.S. but low-skill intensive in Mexico, increased from 1994 to 2000. U.S. net imports from Mexico of non-electronics products, which were low-skill intensive in the U.S. but high-skill intensive in Mexico, increased as well. The skill premium then increased in both countries.

Keywords: Heckscher-Ohlin model; Skill intensity reversal; Rising skill premium; U.S.; Mexico (search for similar items in EconPapers)
JEL-codes: F11 F14 F16 (search for similar items in EconPapers)
Date: 2006-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/14013/1/MPRA_paper_14013.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/29876/4/MPRA_paper_29876.pdf revised version (application/pdf)

Related works:
Journal Article: Is a skill intensity reversal a mere theoretical curiosum? Evidence from the US and Mexico (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:14013

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