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DESCRIPTION:Trade Development and Political Economy Presents: Skill Biased 
 Heterogeneous Firms\, Trade Liberalization\, and the Skill Premium by Arie
 ll ReshefAuthors: Ariell Reshef and James HarriganSpeaker: Ariell ReshefAb
 stract: The authors propose a theory that rising globalization and rising 
 wage inequality are related because trade liberalization raises the demand
  facing highly competitive skill-intensive firms. In their model\, only th
 e lowest-cost firms participate in the global economy exactly along the li
 nes of Melitz (2003). In addition to differing in their productivity\, fir
 ms differ in their skill intensity. The authors model skill-biased technol
 ogy as a correlation between skill intensity and technological acumen\, an
 d they estimate this correlation to be large using firm-level data from Ch
 ile in 1995. A fall in trade costs leads to both greater trade volumes and
  an increase in the relative demand for skill\, as the lowest-cost/most-sk
 illed firms expand to serve the export market while less skill-intensive n
 on-exporters retrench in the face of increased import competition. This me
 chanism works regardless of factor endowment differences\, so the authors 
 provide an explanation for why globalization and wage inequality move toge
 ther in both skill-abundant and skill-scarce countries. In their model cou
 ntries are net exporters of the services of their abundant factor\, but th
 ere are no Stolper-Samuelson effects because import competition affects al
 l domestic firms equally.Short Bio: Ariell Reshef is Assistant Professor o
 f Economics at the University of Virginia. His research interests are in i
 nternational trade and development economics. His work has been published 
 in top economics journals like the Quarterly Journal of Economics and the 
 Review of Economics and Statistics.
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DTSTAMP:20260410T203710Z
DTSTART:20130225T210000Z
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SEQUENCE:0
SUMMARY:Trade Development and Political Economy Presents: Ariell Reshef
UID:RFCALITEM639114358302173604
X-ALT-DESC;FMTTYPE=text/html:Trade Development and Political Economy Presen
 ts: Skill Biased Heterogeneous Firms\, Trade Liberalization\, and the Skil
 l Premium by Ariell Reshef<br><br>Authors: Ariell Reshef and James Harriga
 n<br>Speaker: Ariell Reshef<br><br>Abstract: The authors propose a theory 
 that rising globalization and rising wage inequality are related because t
 rade liberalization raises the demand facing highly competitive skill-inte
 nsive firms. In their model\, only the lowest-cost firms participate in th
 e global economy exactly along the lines of Melitz (2003). In addition to 
 differing in their productivity\, firms differ in their skill intensity. T
 he authors model skill-biased technology as a correlation between skill in
 tensity and technological acumen\, and they estimate this correlation to b
 e large using firm-level data from Chile in 1995. A fall in trade costs le
 ads to both greater trade volumes and an increase in the relative demand f
 or skill\, as the lowest-cost/most-skilled firms expand to serve the expor
 t market while less skill-intensive non-exporters retrench in the face of 
 increased import competition. This mechanism works regardless of factor en
 dowment differences\, so the authors provide an explanation for why global
 ization and wage inequality move together in both skill-abundant and skill
 -scarce countries. In their model countries are net exporters of the servi
 ces of their abundant factor\, but there are no Stolper-Samuelson effects 
 because import competition affects all domestic firms equally.<br><br>Shor
 t Bio: Ariell Reshef is Assistant Professor of Economics at the University
  of Virginia. His research interests are in international trade and develo
 pment economics. His work has been published in top economics journals lik
 e the Quarterly Journal of Economics and the Review of Economics and Stati
 stics.
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