Advanced Search
MyIDEAS: Login

Import Variety and Skill Premium in a Calibrated General Equilibrium Model: The Case of Mexico

Contents:

Author Info

  • Manoj Atolia
  • Yoshinori Kurokawa

Abstract

It can be theoretically shown that imports of new foreign varieties--an increase in the extensive margin of imports--can be a possible channel for increased skill premium in wages. No past studies, however, have quantified how much of the increase in skill premium can be accounted for by the increase in the extensive margin. This paper formulates a static applied general equilibrium model and then calibrates it to the Mexican input-output matrix for 1987. In the calibrated model, our numerical experiments show that the extensive margin growth in Mexican manufactured imports from the U.S. can account for up to approximately 15 percent of the actual increase in skill premium in Mexico from 1987 to 1994. It indicates that the increase in import variety reinforced the increase in Mexican skill premium that was caused by the Mexican export side.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.tsukuba.ac.jp/RePEc/2009-006.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba in its series Tsukuba Economics Working Papers with number 2009-006.

as in new window
Length:
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:tsu:tewpjp:2009-006

Contact details of provider:
Postal: 1-1-1 Tennodai, Tsukuba, Ibaraki 305-8571
Web page: http://www.econ.tsukuba.ac.jp/
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Yoshinori Kurokawa, 2009. "Variety-Skill Complementarity: A Simple Resolution of the Trade-Wage Inequality Anomaly," Tsukuba Economics Working Papers 2009-007, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:tsu:tewpjp:2009-006. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yoshinori Kurokawa).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.