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1、IntraindustryTradeandtheWagePremium：TheoryandEvidenceIntraindustryTradeandtheWagePremium:TheoryandEvidencebyEliasDinopoulosConstantinosSyropoulosBinXuYotoYotovUniversityofFloridaDrexelUniversityCEIBSDrexelUniversityCurrentVersion:April30,2010Abstract:
2、Weexploretheoreticallyandempiricallytherelationshipbetweenintraindustrytradeandthewagepremium>.Ourtheoreticalmodelfeatures8><#004699'>aChamberlinian-typemechanismofincomedistributionbasedonquasi-homotheticconsumerpreferences,non-homotheticproduction,a
3、ndfactor-biasedscaleeconomiesatthefirm/varietylevel>.Theanalysisfocuseson<#004699'>atwo-country,one-sectormodelofintrain-dustrytradewithtwofactorinputsconsistingofhigh-skilledandlow-skilledlabor>.Wefindthat<#004699'>amovefromautarkytofreetrade(<#00469
4、9'>a)raisestheoutputoftherepresentativefirmanditsleveloftotalfactorpro-ductivity,and(b)reduces(raises)therelativewageofhigh-skilledworkersunderthehypothesisofout-put-skillsubstitutability(output-skillcomplementarity)>.Plant-levelevidencefromMexicosupp
5、ortstheempiricalrelevanceoftheproposedincome-distributionmechanism>.Anelectroniccopyofthelatestversionofthepaperisavailableat//bear>.cba>.ufl>.edu/dinopoulos/Research>.htmlJELClassification:F10,F12,F13Keywords:Monopolisticcompetition,intraindustrytrad
6、e,non-homotheticity,output-skillcomplemen-tarity,laborefficiency>.Correspondingauthor:EliasDinopoulos,DepartmentofEconomics,UniversityofFlorida,Gaines-ville,FL>.32611>.E-mail:elias>.dinopoulos@cba>.ufl>.edu;Phone:(352)392-8150;Fax:(352)392-7860>.Ackno
7、wledgements:WeareindebtedtotheInstitutoNacionaldeEstadisticayGeografia(INEGI)officesinAguascalientes,Mexico,andgreatlyappreciatetheirgeneroushospitalityandsupportinconnectionwiththeempiricalpartofthispaper>.Inparticular,wewishtothankGeorginaLeon,Gabri
8、elRomero,FernandoLira,JorgeReyes,MauroGascon,ArmandoAguiar,SebastianDiaz,LiziGonzalezandmanyothersforveryusefulcommentsandsuggestions>.WewouldalsoliketothankLeonardoIacovoneandEricVerhoogenforhelpfuladviceandclarificationsregardingtheINEGIdata
