Calendrier du 30 avril 2020
PSE Internal Seminar
Du 30/04/2020 de 14:00 à 15:30
ZOOM
KETZ Philipp(PSE)
FERRIèRE Axelle(PSE)
Escaping the Losses from Trade: The Impact of Heterogeneity on Skill Acquisition
écrit avec G. Navarro and R.Reyes-Heroles
Future generations of workers can invest in education, acquire skill and avoid the negative consequences of trade openness for low-skilled workers. However, not all members of these future generations might have the resources required to make such investments. In this paper we exploit variation in exposure to import penetration shocks across space in the United States to show that greater import penetration increases college enrollment and that this increase is driven by future workers in richer households. To analyze the welfare implications of the effects of trade openness on college enrollment, we propose a dynamic multi-region model of international trade with heterogeneous agents. The model features incomplete credit markets and costly endogenous skill acquisition. We calibrate the model to match changes in aggregate trade data for the United States and differential import exposure across U.S. regions. Lower import barriers generate increased college enrollment and welfare gains for all workers in the long-run. However, these gains are concentrated on workers with a college education, whose welfare gains are twice as large as those of non-college workers. While all workers in the manufacturing sector lose from grater trade openness, a small number of college educated workers in manufacturing with low wealth experience the greatest losses. Increasing college enrollment for new cohorts over time plays a crucial role in allowing new generations of workers to escape the potential welfare losses form trade. However, poor dynasties take the longest to acquire skills. They are therefore the last to experience positive gains from trade openness, and entire generations may not realize any gains within a life-time.
Travail et économie publique externe
Du 30/04/2020 de 12:30 à 13:45
PSE- 48 boulevard Jourdan, 74014 Paris, salle R1-09
CHYN Eric (Dartmouth College)
POSTPONED