Capital-skill complementarity and the skill premium in a quantitative model of trade

American Economic Journal: Macroeconomics

Volumn 5, Issue 2, 2013, Pages 72-117

  Parro, Fernando ^a  

^a FEDERAL RESERVE BOARD   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84878977618     PISSN: 19457707     EISSN: 19457715     Source Type: Journal    
DOI: 10.1257/mac.5.2.72     Document Type: Article

References (60)

1. Acemoglu, Daron. 2003. "Patterns of Skill Premia." Review of Economic Studies 70 (2): 199-230.
2. Acosta, Pablo, and Gabriel V. Montes-Rojas. 2008. "Trade Reform and Inequality: The Case of Mexico and Argentina in the 1990s." World Economy 31 (6): 763-80.
3. Alvarez, Fernando, and Robert E. Lucas, Jr. 2007. "General Equilibrium Analysis of the Eaton-Kortum Model of International Trade." Journal of Monetary Economics 54 (6): 1726-68.
4. Anderson, James E., and Eric van Wincoop. 2003. "Gravity with Gravitas: A Solution to the Border Puzzle." American Economic Review 93 (1): 170-92.
5. Arkolakis, Costas, Arnaud Costinot, and Andrés Rodríguez-Clare. 2012. "New Trade Models, Same Old Gains.?" American Economic Review 102 (1): 94-130.
6. Armington, Paul S. 1969. "A Theory of Demand for Products Distinguished by Place of Production." International Monetary Fund Staff Papers 16 (1): 159-78.
7. Autor, David H., Lawrence F. Katz, and Alan B. Krueger. 1998. "Computing Inequality: Have Computers Changed the Labor Market?." Quarterly Journal of Economics 113 (4): 1169-1213.
8. Azam, Mehtabul. 2009. "India's Increasing Skill Premium: Role of Demand and Supply." Institute for Study of Labor (IZA) Discussion Paper 3968.
9. Berman, Eli, John Bound, and Zvi Griliches. 1094. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures." Quarterly Journal of Economics 109 (2): 367-97.
10. Berman, Eli, John Bound, and Stephen Machin. 1998. "Implications of Skill-Biased Technological Change: International Evidence." Quarterly Journal of Economics 113 (4): 1245-79.
11. Bernard, Andrew B., J. Bradford Jensen, and Peter K. Schott. 2006. "Trade Costs, Firms and Productivity." Journal of Monetary Economics 53 (5): 917-37.
12. Blum, Bernardo S. 2008. "Trade, Technology, and the Rise of the Service Sector: The Effects on US Wage Inequality." Journal of International Economics 74 (2): 441-58.
13. Borjas, George J., Richard B. Freeman, and Lawrence F. Katz. 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?." Brookings Papers on Economic Activity 27 (1): 1-67.
14. Burstein, Ariel, Javier Cravino, and Jonathan Vogel. 2013. "Importing Skill-Biased Technology." American Economic Journal: Macroeconomics 5 (2): 32-71.
15. Burstein, Ariel, and Jonathan Vogel. 2011. "Factor Prices and International Trade: A Unifying Perspective." National Bureau of Economic Research (NBER) Working Paper 16904.
16. Burstein, Ariel, and Jonathan Vogel. 2012. "International Trade, Technology, and the Skill Premium." http://www.columbia.edu/~jev9/BV-TTSP.pdf.
17. Bustos, Paula. 2011. "The Impact of Trade Liberalization on Skill Upgrading: Evidence from Argentina." http://www.econ.upf.edu/docs/papers/downloads/1189.pdf.
18. Caliendo, Lorenzo, and Fernando Parro. 2011. "Estimates of the Trade and Welfare Effects of NAFTA." http://faculty.som.yale.edu/lorenzocaliendo/ETWENAFTA042511.pdf.
19. Casacuberta, Carlos, and Marcel Vaillant. 2002. "Trade and Wages in Uruguay in the 1990s." http://decon.edu.uy/publica/2002/Doc0902.pdf.
20. Chaney, Thomas. 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade." American Economic Review 98 (4): 1707-21.
21. Charnoz, Pauline, Elise Coudin, and Mathilde Gaini. 2011. "Wage Inequalities in France 1976-2004: A Quantile Regression Approach." National Institute of Statistics and Economic Studies (INSEE) Working Paper 6.
22. Costinot, Arnaud, Dave Donaldson, and Ivana Komunjer. 2012. "What Goods Do Countries Trade? A Quantitative Exploration of Ricardo's Ideas." Review of Economic Studies 79 (2): 581-608.
23. Davis, Donald R., and Prachi Mishra. 2007. "Stolper-Samuelson Is Dead: And Other Crimes of Both Theory and Data." In Globalization and Poverty. NBER Conference Report, edited by Ann Harrison, 87-108. Chicago: University of Chicago Press.
24. Deardorff, Alan V., and Robert W. Staiger. 1988. "An Interpretation of the Factor Content of Trade." Journal of International Economics 24 (1/2): 93-107.
25. Dekle, Robert, Jonathan Eaton, and Samuel Kortum. 2008. "Global Rebalancing with Gravity: Measuring the Burden of Adjustment." International Monetary Fund Staff Papers 55 (3): 511-40.
26. di Gropello, Emanuela, and Chris Sakellariou. 2010. "Industry and Skill Wage Premiums in East Asia." World Bank Policy Research Working Paper 5379.
27. Domeij, David, and Lars Ljungqvist. 2009. "The Missing Swedish Skill Premium: Sweden versus the United States 1970-2002." http://www.hhs.se/se/Search/Person/Pages/Person.aspx?PersonID=75.
28. Donaldson, Dave. 2010. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure." National Bureau of Economic Research (NBER) Working Paper 16487.
29. Dornbusch, Rudiger, Stanley Fischer, and Paul A. Samuelson. 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods." American Economic Review 67 (5): 823-39.
30. Eaton, Jonathan, and Samuel Kortum. 2001. "Trade in Capital Goods." European Economic Review 45 (7): 1195-1235.
31. Eaton, Jonathan, and Samuel Kortum. 2002. "Technology, Geography, and Trade." Econometrica 70 (5): 1741-79.
32. Ethier, Wilfred J. 1982. "National and International Returns to Scale in the Modern Theory of International Trade." American Economic Review 72 (3): 389-405.
33. Feenstra, Robert C. 2004. Advanced International Trade: Theory and Evidence. Princeton: Princeton University Press.
34. Feenstra, Robert C., and Gordon H. Hanson. 1997. "Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras." Journal of International Economics 42 (3-4): 371-93.
35. Finicelli, Andrea, Patrizio Pagano, and Massimo Sbracia. 2009. "Ricardian Selection." Bank of Italy Working Paper 728.
36. Gallego, Francisco A. 2012. "Skill Premium in Chile: Studying Skill Upgrading in the South." World Development 40 (3): 594-609.
37. Ge, Suqin, and Dennis Tao Yang. 2008. "Accounting for Rising Wages in China." http://www1.gsm.pku.edu.cn/userfiles/0708-25.pdf.
38. Goldberg, Pinelopi Koujianou, and Nina Pavcnik. 2007. "Distributional Effects of Globalization in Developing Countries." Journal of Economic Literature 45 (1): 39-82.
39. Griliches, Zvi. 1969. "Capital-Skill Complementarity." Review of Economics and Statistics 51 (4): 465-68.
40. Gutierrez, Catalina. 2011. "Trade and Technology: Decomposing the Rise of the Skill Premium." Universidad de Los Andes School of Government Working Paper 1.
41. Hamermesh, Daniel S. 1093. Labor Demand. Princeton: Princeton University Press.
42. Head, Keith, and John Ries. 2001. "Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade." American Economic Review 91 (4): 858-76.
43. Helpman, Elhanan, Oleg Itskhoki, and Stephen Redding. 2010. "Inequality and Unemployment in a Global Economy." Econometrica 78 (4): 1239-83.
44. Hornstein, Andreas, Per Krusell, and Giovanni L. Violante. 2005. "The Effects of Technical Change on Labor Market Inequalities." In Handbook of Economic Growth, Vol. 1B, edited by Philippe Aghion and Steven N. Durlauf, 1275-1370. Amsterdam: North-Holland.
45. Katz, Lawrence F., and Kevin Murphy. 1992. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors." Quarterly Journal of Economics 107 (2): 35-78.
46. Koren, Miklos, and Marton Csillag. 2011. "Machines and Machinists: Capital-Skill Complementarity from an International Trade Perspective." http://miklos.koren.hu/view/kmwprs/.
47. Krugman, Paul R. 1981. "Intraindustry Specialization and the Gains from Trade." Journal of Political Economy 89 (5): 959-73.
48. Krusell, Per, Lee Ohanian, José-Víctor Ríos-Rull, and Giovanni Violante. 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis." Econometrica 68 (5): 1029-53.
49. Lawrence, Robert Z., and Matthew J. Slaughter. 1093. "International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup?" Brookings Papers on Economic Activity 23 (1): 161-210.
50. Matsuyama, Kiminori. 2007. "Beyond Icebergs: Towards a Theory of Biased Globalization." Review of Economic Studies 74 (1): 237-53.
51. Mazumdar, Joy, and Myriam Quispe-Agnoli. 2004. "Can Capital-Skill Complementarity Explain the Rising Skill Premium in Developing Countries? Evidence from Peru. " Federal Reserve Bank of Atlanta Working Paper 0411.
52. Melitz, Marc J. 2003. "The Impact of Trade on Intra-industry Reallocations and Aggregate Industry Productivity." Econometrica 71 (6): 1695-1725.
53. Monte, Ferdinando. 2011. "Skill Bias, Trade, and Wage Dispersion." Journal of International Economics 83 (2): 202-18.
54. Parro, Fernando. 2013. "Capital-Skill Complementarity and the Skill Premium in a Quantitative Model of Trade: Dataset." American Economic Journal: Macroeconomics. http://dx.doi.org/10.1257/mac.5.2.72.
55. Simonovska, Ina, and Michael Waugh. 2012. "The Elasticity of Trade: Estimates and Evidence." National Bureau of Economic Research (NBER) Working Paper 16796.
56. Stokey, Nancy L. 1096. "Free Trade, Factor Returns, and Factor Accumulation." Journal of Economic Growth 1 (4): 421-47.
57. Verhoogen, Eric A. 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector." Quarterly Journal of Economics 123 (2): 489-530.
58. Waugh, Michael E. 2010. "International Trade and Income Differences." American Economic Review 100 (5): 2093-2124.
59. Winchester, Niven, David Greenaway, and Geoffrey V. Reed. 2006. "Skill Classification and the Effects of Trade on Wage Inequality." Review of World Economics 142 (2): 287-306.
60. Yeaple, Stephen Ross. 2005. "A Simple Model of Firm Heterogeneity, International Trade, and Wages." Journal of International Economics 65 (1): 1-20.