International Trade and Human Capital: A Simple General Equilibrium Model
Year: 1983
Type: article
Abstract: The paper incorporates the formation of human capital into the two-factor, two-good model of international trade. Workers can choose between being unskilled and earning the corresponding wage or obtaining an education that enables them to earn a higher wage. The wages of skilled and unskilled labor and the direct and indirect costs of education are all determined endogenously, along with the terms of trade and the pattern of comparative advantage. The implications of the model are consistent with the extensive empirical research on the role of human capital in explaining patterns of comparative advantage.
Source: Journal of Political Economy
DOI: 10.1086/261195
Authors: Ronald Findlay, Henryk Kierzkowski
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2011563394