TY  - JOUR
AU  - Bombardini,Matilde
AU  - Gallipoli,Giovanni
AU  - Pupato,Germán
TI  - Skill Dispersion and Trade Flows
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15097
PY  - 2009
Y2  - June 2009
UR  - http://www.nber.org/papers/w15097
L1  - http://www.nber.org/papers/w15097.pdf
N1  - Author contact info:
Matilde Bombardini
Department of Economics
University of British Columbia
997-1873 East Mall
Vancouver, BC V6T 1Z1
CANADA
Tel: 604/822-3866
Fax: 604/822-5915
E-Mail: matildeb@interchange.ubc.ca

Giovanni Gallipoli
Department of Economics
University of British Columbia
997-1873 East Mall
Vancouver, BC V6T 1Z1
CANADA
E-Mail: gallipol@interchange.ubc.ca

German Pupato
Department of Economics
University of British Columbia
997-1873 East Mall
Vancouver, BC V6T 1Z1
CANADA
E-Mail: pupa08@gmail.com
AB  - Is skill dispersion a source of comparative advantage? While it is established that a country's aggregate endowment of human capital is an important determinant of comparative advantage, this paper investigates whether the distribution of skills in the labor force can play a role in the determination of trade flows. We develop a multi-country, multi-sector model of trade in which comparative advantage derives from (i) differences across sectors in the complementarity of workers' skills, (ii) the dispersion of skills in the working population. First, we show how higher dispersion in human capital can trigger specialization in sectors characterized by higher substitutability among workers' skills. We then use industry-level bilateral trade data to show that human capital dispersion, as measured by a standard international metric, has a significant effect on trade flows. We find that the effect is of a magnitude comparable to that of aggregate endowments. The result is robust to the introduction of several controls for other proximate causes of comparative advantage.
ER  -