NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Eunhee Lee

Department of Economics
University of Maryland
Tydings Hall
7343 Preinkert Drive
College Park, MD 20902
Tel: (301) 405-3534

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Institutional Affiliation: University of Maryland

NBER Working Papers and Publications

August 2018Global Value Chains and Inequality with Endogenous Labor Supply
with Kei-Mu Yi: w24884
We assess the role of global value chains in transmitting global integration shocks to aggregate trade, as well as distributional outcomes. We develop a multi-country general equilibrium trade model that features multi-stage production, with different stages having different productivities and using factors (occupations) with different intensities. The model also features a Roy mechanism, in which heterogeneous workers endogenously choose their sector and occupation. Country- and worker-level comparative advantages interact. A reduction in trade costs leads to countries specializing in their comparative advantage sectors and production stages. This specialization changes labor demand, and also leads to more workers shifting to their comparative advantage sectors and occupations. We calibra...

Published: Eunhee Lee & Kei-Mu Yi, 2018. "Global value chains and inequality with endogenous labor supply," Journal of International Economics, vol 115, pages 223-241. citation courtesy of

October 2017Global Value Chains and Inequality with Endogenous Labor Supply
with Kei-Mu Yi
in Trade and Labor Markets, Gordon H. Hanson and Stephen J. Redding, organizers
 
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