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Author:Grossman, G.M.
Maggi, G.
Title:Diversity and trade
Journal:American Economic Review
2000 : DEC, VOL. 90:5, p. 1255-1275
Index terms:DIVERSITY
INTERNATIONAL TRADE
LABOUR SUPPLY
Language:eng
Abstract:The authors develop a competitive model of trade between countries with similar aggregate factor andowments. This trade pattern reflects differences in the distribution of talent across the labor forces of the two countries. The country with a relatively homogenous population exports the good produced by a technology with complementarities between tasks. The country with a more diverse workforce exports the good for which individual success is more important. Imperfect observability of talent strengthens the forces of comparative advantage.
SCIMA record nr: 220869
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