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The Skill Bias of the US Trade Deficit

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  • Epifani, Paolo
  • Crinò, Rosario

Abstract

We propose a theoretical foundation for a link between North-South trade imbalances and skill upgrading. We provide robust support for our theory using a panel of US manufacturing industries observed between 1977 and 2005. Our results suggest that the impact of the US trade deficit on the relative demand for skills within US industries may dominate that of alternative forces of change, such as trade liberalization, offshoring and technical change.

Suggested Citation

  • Epifani, Paolo & Crinò, Rosario, 2014. "The Skill Bias of the US Trade Deficit," CEPR Discussion Papers 9899, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:9899
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    More about this item

    Keywords

    North-south trade imbalances; Skill premia; Skill upgrading;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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