Occupational choice, aggregate productivity, and trade

Arbeitspapier

We propose occupational decisions of heterogeneous individuals as an alternative mechanism of explaining the distribution of firm productivities emphasized by empirical studies. Thus, we integrate the frameworks of Melitz (2003), and of Manasse and Turrini (2001) that establish the theoretical base of trade models with heterogeneous firms. Our model is technically much simpler than the Melitz approach while preserving the main results on firm-selection effects due to international market integration. Our approach paves the way for detailed analysis of institutions in a heterogeneous firm model to better understand the link between institutions and an economy's productivity distribution.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 5497

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade and Labor Market Interactions ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: intra-industry trade ; heterogeneous productivities ; firm selection ; occupational choice ; Produktivität ; Branchenentwicklung ; Strukturwandel ; Berufswahl ; Allokation ; Intraindustrieller Handel ; Außenhandelsliberalisierung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Meckl, Jürgen ; Weigert, Benjamin
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/52123
• URN: urn:nbn:de:101:1-201104113700
• Last update: 10.03.2025, 11:42 AM CET