Is a Skill Intensity Reversal a Mere Theoretical Curiosum? Evidence from the U.S. and Mexico

Kurokawa, Yoshinori (2011): Is a Skill Intensity Reversal a Mere Theoretical Curiosum? Evidence from the U.S. and Mexico. Forthcoming in: Economics Letters

Abstract

A rising skill premium in two countries can be explained 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 for the existence of the skill intensity reversal.

• Item Type: MPRA Paper
• Language: English
• Keywords: Heckscher-Ohlin model; Skill intensity reversal; Wage inequality; Electronics products
• 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 - Country and Industry Studies of Trade

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