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Skills scarcity and export intensity

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  • Carlo Perroni
  • Davide Suverato

Abstract

We describe a model of trade with skills‐based product differentiation and non‐proportional trade costs that predicts a positive correlation between firms' export intensity, the price of their exports and the wages they pay to their workers. In equilibrium, firms that employ workers with comparatively scarcer skills export a larger proportion of their output, pay higher wages and charge higher prices. In line with empirical evidence, the model predicts that trade liberalization can cause the distribution of earnings to become more polarized, with patterns that reflect the heterogeneous effects of trade liberalization on firms' export performance. Rareté des compétences et intensité des exportations. Nous décrivons un modèle du commerce avec une différenciation du produit fondée sur les compétences et des coûts des échanges non proportionnels qui prédit une corrélation positive entre l'intensité des exportations des entreprises, le prix de leurs exportations et les salaires qu'elles versent à leurs travailleurs. À l'équilibre, les entreprises qui emploient des travailleurs ayant des compétences rares exportent une plus grande proportion de leur production, versent des salaires supérieurs et imposent des prix plus élevés. Conformément aux données empiriques, le modèle prédit que la libéralisation des échanges peut augmenter la polarisation de la distribution des revenus, avec des schémas qui reflètent les effets hétérogènes de la libéralisation des échanges sur les résultats des exportations des entreprises.

Suggested Citation

  • Carlo Perroni & Davide Suverato, 2023. "Skills scarcity and export intensity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 719-757, May.
  • Handle: RePEc:wly:canjec:v:56:y:2023:i:2:p:719-757
    DOI: 10.1111/caje.12650
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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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