TY  - GEN
AB  - We develop a new model of trade in which educational institutions drive
comparative advantage and determine the distribution of human capital within
and across countries. Our framework exploits a multiplicity of sectors and the
continuous support of human capital choices to demonstrate that freer trade
can induce crowding out of the middle occupations towards the skill acquisition
extremes in one country, and simultaneous expansion of middle-income industries
in another. Individual gains from trade may be non-monotonic in workers'
ability, and middle ability agents can lose the most from trade liberalization.
Comparing trade and education policy, we find that targeted education subsidies
are more effective than tariffs as a means to preserve "middle class" jobs,
while uniform educational subsidies have no effect.
DA  - 2013
DO  - 10.4119/unibi/2562668
KW  - Education
KW  - Trade and Education Policy
KW  - Skill Acquisition
KW  - In-come Distribution
LA  - eng
PY  - 2013
SN  - 2196-2723
SP  - 41-
TI  - Trade, Education, and the Shrinking Middle Class
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-25626685
Y2  - 2024-11-22T09:44:22
ER  -