Distribution of Labor Qualities and Comparative Advantage
1
조회
0
다운로드
3
인용
0
참고문헌
키워드
초록
This paper develops the simplest 2-2-2 model to provide a unified account for both one-way and two-way trades. In so doing, I incorporate firm selection into the Hecksher-Ohlin model. In this paper, labor is heterogeneous in working attitude and determines effective factor costs like in Leamer (1999). There are two sectors, the contract-independent sector (sector 1) under perfect competition and the contract-dependent sector (sector 2) under monopolistic competition. In sector 2, more effortful firms are selected for survival. Due to the firm selection, sector 2 is larger when the country is abundant of effortful workers. The larger size of sector 2 leads the country to having comparative disadvantage in sector 1. This is because sector 2 absorbs more effortful workers and raises the wage for sector 1. Thus, Country 1, relatively abundant of effortful workers, should export more varieties (two-way trade), and create more well-paying jobs than Country 2, relatively scarce of effortful workers. Country 2 is led to having comparative advantage in sector 1. Thus, Country 2 exports Good 1 to Country 1 (one-way trade). Trade equalizes the prices of Good 1 and sector-1 wage across countries. With more well-paying jobs, aggregate income is larger in Country 1 than in Country 2. This paper can contribute to the literature of similar endowments and trade.
Abstract
This paper develops the simplest 2-2-2 model to provide a unified account for both one-way and two-way trades. In so doing, I incorporate firm selection into the Hecksher-Ohlin model. In this paper, labor is heterogeneous in working attitude and determines effective factor costs like in Leamer (1999). There are two sectors, the contract-independent sector (sector 1) under perfect competition and the contract-dependent sector (sector 2) under monopolistic competition. In sector 2, more effortful firms are selected for survival. Due to the firm selection, sector 2 is larger when the country is abundant of effortful workers. The larger size of sector 2 leads the country to having comparative disadvantage in sector 1. This is because sector 2 absorbs more effortful workers and raises the wage for sector 1. Thus, Country 1, relatively abundant of effortful workers, should export more varieties (two-way trade), and create more well-paying jobs than Country 2, relatively scarce of effortful workers. Country 2 is led to having comparative advantage in sector 1. Thus, Country 2 exports Good 1 to Country 1 (one-way trade). Trade equalizes the prices of Good 1 and sector-1 wage across countries. With more well-paying jobs, aggregate income is larger in Country 1 than in Country 2. This paper can contribute to the literature of similar endowments and trade.
참고문헌 (33)
- Acemoglu, D., "Patterns of Skill Premia", Review of Economic Studies, 70, pp.199~230 (2003)
- Acemoglu, D., "Contracts and Technology Adoption", American Economic Review, 97(3), pp.916~943 (2007)
- Antras, P., "Incomplete Contracts and the Product Cycle", American Economic Review, 95(4), pp.1054~1073 (2005)
- Bernard, A., "Comparative Advantage and Heterogeneous Firms", Review of Economic Studies, 74, pp.31~66 (2007)
- Bougheas, S., "Trade and the Distribution of Human Capital", Journal of International Economics, 73, pp.421~433 (2007)
- Burstein, A., "International Trade, Technology, and the Skill Premium", Journal of Political Economy, 125(5), pp.1356~1412 (2012)
- Caselli, F., "Accounting for Cross-Country Income Differences", Handbook of Economic Growth, 1A, pp.679~741 (2005)
- Costinot, A., "On the Origins of Comparative Advantage", Journal of International Economics, 77, pp.255~264 (2009)
- Davids, D., "Good Jobs, Bad Jobs, and Trade Liberalization", Journal of International Economics, 84, pp.26~36 (2011)
- Davidson, C., "The Structure of Simple General Equilibrium Models with Frictional Unemployment", Journal of Political Economy, 96(6), pp.1267~1293 (1988)
- Dixit, A., "Monopolistic Competition and Optimum Product Diversity", American Economic Review, 67(3), pp.297~308 (1977)
- Egger, H., "Firm Heterogeneity and the Labor Market Effects of Trade Liberalization", International Economic Review, 50(1), pp.187~216 (2009)
- Felbermayr, G., "Globalization and Labor Market Outcomes : Wage Bargaining, Search Frictions, and Firm Heterogeneity", Journal of Economic Theory, 146, pp.39~73 (2011)
- Grossman, G. M., "The Distribution of Talents and the Pattern and Consequences of International Trade", Journal of Political Economy, 112(1), pp.209~239 (2004)
- Grossman, G. M., "Heterogeneous Workers and International Trade", Review of World Economy, 149, pp.211~245 (2013)
- Grossman, G. M., "Diversity and Trade", American Economic Review, 90(5), pp.1255~1275 (2000)
- Grossman, G. M., "Matching, Sorting, and the Distributional Effects of International Trade", Journal of Political Economy, 125(1), pp.224~264 (2016)
- Harrigan, J., "Skill-Biased Heterogeneous Firms, Trade Liberalization and the Skill Premium", Canadian Journal of Economics, 48(3), pp.1024~1066 (2015)
- Helpman, E., "Labor Market Rigidities, Trade and Unemployment", Review of Economic Studies, 77(3), pp.1100~1137 (2010)
- Helpman, E., "Inequality and Unemployment in a Global Economy", Econometrica, 78(4), pp.1239~1283 (2010)
- Ishise, H., "Capital Heterogeneity as a Source of Comparative Advantage : Putty-clay Technology in a Ricardian model", Journal of International Economics, 99, pp.223~236 (2016)
- Krugman, P., "Increasing Returns, Monopolistic Competition, and International Trade", Journal of International Economics, 9, pp.469~479 (1979)
- Leamer, E. E., "Effort, Wages, and the International Division of Labor", Journal of Political Economy, 107(6), pp.1127~1162 (1999)
- 이양승, "Credibility of Government’s Commitment and Aggregate Productivity", 경제연구, 35(4), pp.221~238 (2017), 한국경제통상학회[DOI]
- 이양승, "Human Resource Management and Intra-Industry Trade", Journal of Korea Trade, 23(8), pp.27~44 (2019), 한국무역학회[DOI]
- 이양승, "Factor Heterogeneity, Factor Market Imperfection and Trade", International Economic Journal, 33(1), pp.170~188 (2019), 한국국제경제학회[DOI]
- Levchenko, A., "Institutional Quality and International Trade", Review of Economic Studies, 74, pp.791~819 (2007)
- Melitz, M. J., "The Impact of Trade on Intra-Sector Reallocation and Aggregate Sector Productivity", Econometrica, 71, pp.1695~1725 (2003)
- Melitz, M., "Market Size, Trade, and Productivity", Review of Economic Studies, 75, pp.295~316 (2008)
- Nunn, N., "Relation-Specificity, Incomplete Contracts, and the Pattern of Trade", Quarterly Journal of Economics, pp.569~600 (2009)
- Vogel, J., "Institutions and Moral Hazard in Open Economies", Journal of International Economics, 71, pp.495~514 (2007)
- Yeaple, S. R., "A Simple Model of Heterogeneity, International Trade and Wages", Journal of International Economics, 65, pp.1~20 (2005)
- Zhu, S. C., "Trade and Inequality in Developing Countries; a General Equilibrium Analysis", Journal of International Economics, 65, pp.21~48 (2005)