Arbeitspapier

Trade, education, and the shrinking middle class

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.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 4141

Klassifikation
Wirtschaft
Neoclassical Models of Trade
Trade Policy; International Trade Organizations
Economic Integration
Trade and Labor Market Interactions
Thema
trade and education policy
skill acquisition
education
income distribution

Ereignis
Geistige Schöpfung
(wer)
Blanchard, Emily
Willmann, Gerald
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Blanchard, Emily
  • Willmann, Gerald
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2013

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