Kurokawa, Yoshinori (2006): Skill Intensity Reversal and the Rising Skill Premium: Evidence from the U.S. and Mexico.
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Rising skill premium in two countries can be explained simply by the Heckscher-Ohlin model assuming a “skill intensity reversal.” This assumption, however, poses an empirical challenge since past research has found little evidence for the so-called “factor intensity reversal.” We now show clear-cut evidence: U.S. net exports to Mexico of electronics products, which were high-skill intensive in the U.S. but low-skill intensive in Mexico, increased from 1994 to 2000. U.S. net imports from Mexico of non-electronics products, which were low-skill intensive in the U.S. but high-skill intensive in Mexico, increased as well. The skill premium then increased in both countries.
|Item Type:||MPRA Paper|
|Original Title:||Skill Intensity Reversal and the Rising Skill Premium: Evidence from the U.S. and Mexico|
|Keywords:||Heckscher-Ohlin model; Skill intensity reversal; Rising skill premium; U.S.; Mexico|
|Subjects:||F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
|Depositing User:||Yoshinori Kurokawa|
|Date Deposited:||12. Mar 2009 03:27|
|Last Modified:||11. Feb 2013 22:28|
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