Inn an econommy with imperfect labor contracts, differences in the distribution of human capital are an independent source of comparative advantage. I study a world economy with two sectors, one where output is produced by teams and another where individuals can work alone.
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Paper provided by Princeton, Woodrow Wilson School - Public and International Affairs in its series Papers with number
205.
Length: 33 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:priwpu:205
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Find related papers by JEL classification: F11 - International Economics - - Trade - - - Neoclassical Models of Trade D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Gene M. Grossman & Giovanni Maggi, 1998.
"Diversity and Trade,"
NBER Working Papers
6741, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Gene M. Grossman & Giovanni Maggi, 2000.
"Diversity and Trade,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1255-1275, December.
[Downloadable!] (restricted)