Matching, Sorting, and the Distributional Effects of International Trade

TitleMatching, Sorting, and the Distributional Effects of International Trade
Publication TypeJournal Article
Year of Publication2017
AuthorsGrossman G, Helpman E, Kircher P
JournalJournal of Political Economy
Volume125
Pagination224–264
Date Publishedfeb
ISSN0022-3808
ISBN Number9780821383537
AbstractWe study the distributional consequences of trade in a world with two industries and two heterogeneous factors of production. Productivity in each production unit reflects the ability of the manager and the abilities of the workers, with complementarity between the two. We begin by examining the forces that govern the sorting of worker and manager types to industries and the matching of workers and managers within industries. We then consider how changes in relative output prices generated by changes in the trading environment affect sorting, matching, and the distributions of wages and salaries.
URLhttps://www.journals.uchicago.edu/doi/10.1086/689608 http://www.journals.uchicago.edu/doi/10.1086/689608
DOI10.1086/689608