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Occupational Choice, Aggregate Productivity, and Trade

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Author Info

  • Meckl, Jürgen

    ()
    (Justus Liebig University, Giessen)

  • Weigert, Benjamin

    ()
    (German Council of Economic Experts)

Abstract

We propose occupational decisions of heterogeneous individuals as an alternative mechanism of explaining the distribution of firm productivities emphasized by empirical studies. Thus, we integrate the frameworks of Melitz (2003), and of Manasse and Turrini (2001) that establish the theoretical base of trade models with heterogeneous firms. Our model is technically much simpler than the Melitz approach while preserving the main results on firm-selection effects due to international market integration. Our approach paves the way for detailed analysis of institutions in a heterogeneous firm model to better understand the link between institutions and an economy’s productivity distribution.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5497.

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Length: 15 pages
Date of creation: Feb 2011
Date of revision:
Publication status: published in: Review of Development Economics, 2013, 17 (3), 549-558
Handle: RePEc:iza:izadps:dp5497

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Related research

Keywords: firm selection; heterogeneous productivities; intra-industry trade; occupational choice;

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References

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  1. M. Del Gatto & G. Mion & GIP. Ottaviano, 2007. "Trade Integration, Firm Selection and the Costs of Non-Europe," Working Paper CRENoS 200703, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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Cited by:
  1. Marco de Pinto & Jochen Michaelis, 2011. "International Trade and Unemployment - the Worker-Selection Effect," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 201127, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. Lin Ma, 2014. "Globalization And Top Income Shares," Working Papers, Center for Economic Studies, U.S. Census Bureau 14-07, Center for Economic Studies, U.S. Census Bureau.

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