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Skill Bias, Trade, and Wage Dispersion

Monte, Ferdinando (2009): Skill Bias, Trade, and Wage Dispersion.

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Abstract

Skill-biased technical change and trade integration have both been indicated to be the cause of the wide increase in wage inequality in U.S. in the last 50 years. This paper shows in a simple uni�ed framework why both mechanisms can reproduce the observed pattern of wage dispersion. Intra-fi�rm rent distribution can be used to disentangle these causes.

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