NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sorting It Out: International Trade and Protection With Heterogeneous Workers

Franziska Ohnsorge, Daniel Trefler

NBER Working Paper No. 10959
Issued in December 2004
NBER Program(s):   ITI

The two models of international trade with developed factor markets -- Heckscher-Ohlin and Specific Factors -- both suffer significant defects. For example, their predictions about the patterns of domestic production and international trade are for the most part either indeterminate or uselessly complex. The problem with these models is that the supply of factors to an industry is either perfectly elastic or perfectly inelastic. Using a model in which heterogeneous workers sort across industries we eliminate this problem. The result is a multi-good model with sharp predictions about (1) the domestic pattern of production, (2) North-North and North-South trade, (3) the demand for protection, (4) the determinants of domestic income distribution, and (5) the effect of trade on economic development.

download in pdf format
   (392 K)

email paper

This paper is available as PDF (392 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10959

Published: Ohnsorge, Franziska and Daniel Trefler. “Sorting it Out: International Trade and Protection with Heterogeneous Workers.” Journal of Political Economy 115, 5 (October 2007): 868-892.

Users who downloaded this paper also downloaded these:
Trefler w8293 The Long and Short of the Canada-U.S. Free Trade Agreement
Bombardini, Gallipoli, and Pupato w15097 Skill Dispersion and Trade Flows
Costinot and Vogel w14672 Matching and Inequality in the World Economy
Davis and Mishra Stolper-Samuelson Is Dead: And Other Crimes of Both Theory and Data
Antràs and Rossi-Hansberg w14262 Organizations and Trade
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us