Occupational Choice, Aggregate Productivity, and Trade

15 Pages Posted: 21 Feb 2011

See all articles by Jürgen Meckl

Jürgen Meckl

University of Konstanz; IZA Institute of Labor Economics

Benjamin Weigert

University of Giessen - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2011

Abstract

We propose occupational decisions of heterogeneous individuals as an alternative mechanism of explaining the distribution of firm productivities emphasized by empirical studies. Thus, we integrate the frameworks of Melitz (2003), and of Manasse and Turrini (2001) that establish the theoretical base of trade models with heterogeneous firms. Our model is technically much simpler than the Melitz approach while preserving the main results on firm-selection effects due to international market integration. Our approach paves the way for detailed analysis of institutions in a heterogeneous firm model to better understand the link between institutions and an economy’s productivity distribution.

Keywords: intra-industry trade, heterogeneous productivities, firm selection, occupational choice

JEL Classification: F12, F16, J24

Suggested Citation

Meckl, Jürgen and Weigert, Benjamin, Occupational Choice, Aggregate Productivity, and Trade (February 1, 2011). IZA Discussion Paper No. 5497, Available at SSRN: https://ssrn.com/abstract=1765663 or http://dx.doi.org/10.2139/ssrn.1765663

Jürgen Meckl (Contact Author)

University of Konstanz ( email )

Fach D-144
Universitätsstraße 10
Konstanz, D-78457
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Benjamin Weigert

University of Giessen - Department of Economics ( email )

Licher Str. 62
Giessen, Hessen D-35394
Germany

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