Matching and Inequality in the World Economy

By Arnaud Costinot, Jonathan Vogel. Journal of Political Economy, 2010

371 citations recorded by the source corpus.

This paper develops tools and techniques to analyze the determinants of factor allocation and factor prices in economies with a large number of goods and factors. The main results of our paper characterize sufficient conditions for robust monotone comparative statics predictions in a Roy-like assignment model. These general results are then used to generate new insights about the consequences of globalization.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/535e1c0d0e92af8d2ca91c00eea29a8dfb070ad2

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Citations in the corpus

Where Have the Middle-Wage Workers Gone? A Study of Polarization Using Panel Data (2016, background): “See also Costinot and Vogel ð2010Þ for a model with a continuum of skills and a continuum of tasks.”
Sorting Multidimensional Types: Theory and Application (2017, methodology): “Similarly, this model would capture sorting results from the environment specified in Eeckhout and Kircher [2012], if they extended their model to a fully bidimensional setting where firms and workers not only sort on the quality but also on the quantity dimension (Proposition 11 (a), Appendix D.”
Organizations and Trade (2009, background): “13Ohnsorge and Tre er (2007), Costinot (2008) and Costinot and Vogel (2008) also introduce worker heterogeneity in standard trade models, but focus on the sorting of workers into industries rather than the matching between di¤erent types of workers.”
Offshoring and Directed Technical Change (2015, neutral): “In those models, the equation for the relative profitability of skill-complement innovations, (23), simplifies to:”
The Rise of the Machines: Automation, Horizontal Innovation, and Income Inequality (2014, positive): “…changes through the lens of assignment models where workers of different skill levels are matched to tasks of different skill productivities (e.g. Costinot and Vogel, 2010 and Burstein, Morales and Vogel, 2014). are kept constant in our baseline model, but we consider the case where workers…”
Industry Dynamics and Competition from Low-Wage Countries: Evidence on Italy (2014, positive): “…specification is the following: lnLjt = αj + βt + δLWPENjt + γOTPENjt + t (7) 3Using an assignment model with a continuum of goods and workers, Costinot and Vogel (2010) also show that, when the skill-abundant country opens to trade, the employment share in skill-intensive tasks will…”
Recent Findings on Trade and Inequality (2010, neutral): “A closely related paper is Costinot and Vogel (2010), who also look at a model with a continuum of goods, each of which is produced with labor alone and which differ in their skill intensities.”
Technological change, rent and income inequalities: A Schumpeterian approach (2017, background): “According to this literature, the introduction of new technologies, strongly biased in favour of skilled labour, may have affected labour markets with a sharp increase in the skill premium and a reduction in real wages for low-skilled workers with a major increase in wage asymmetries and hence incom”