TY  - JOUR
AU  - Grossman,Gene M.
AU  - Maggi,Giovanni
TI  - Diversity and Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6741
PY  - 1998
Y2  - September 1998
UR  - http://www.nber.org/papers/w6741
L1  - http://www.nber.org/papers/w6741.pdf
N1  - Author contact info:
Gene M. Grossman
International Economics Section
Department of Economics
Princeton University
Princeton, NJ 08544
Tel: 609/258-4823
Fax: 609/258-1374
E-Mail: grossman@princeton.edu

Giovanni Maggi
Department of Economics
Yale University
37 Hillhouse Avenue Rm 27
New Haven, CT 06511
Tel: 203/432-3569
Fax: 203/432-6323
E-Mail: giovanni.maggi@yale.edu
AB  - We develop a competitive model of trade between countries with similar aggregate factor endowments.  The trade pattern reflects differences in the distribution of talent across the labor forces of the two countries.  The country with a relatively homogenous population exports the good produced by a technology with complementarities between tasks.  The country with a more diverse work force exports the good for which individual success is more important.  Imperfect observabilitiy of talent strengthens the forces of comparative advantage.  Finally, we examine an aspect of education policy concerning the spread of human capital across the student population.
ER  -