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Labor Heterogeneity and the Pattern of Trade

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  • Cebreros Alfonso

Abstract

This article combines data on trade flows with a novel construction of the distribution of skill in the population, based on the results from the International Adult Literacy Survey of the OECD, to evaluate the empirical importance of the distribution of talent as a determinant of the sectoral pattern of trade. It is found that both the mean and standard deviation of the distribution of skills are significant determinants of the pattern of trade. According to the results, cross-country differences in the distribution of skills explain more of the sectoral pattern of trade than differences in capital stocks and differences in indicators of a country's institutional framework.

Suggested Citation

  • Cebreros Alfonso, 2018. "Labor Heterogeneity and the Pattern of Trade," Working Papers 2018-01, Banco de México.
    • Handle: RePEc:bdm:wpaper:2018-01
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    References listed on IDEAS

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    More about this item

    Keywords

    comparative advantage; labor force composition; factor endowments; human capital;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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