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ERIC Number: EJ725294
Record Type: Journal
Publication Date: 2004-Feb-1
Pages: 31
Abstractor: ERIC
Reference Count: 16
ISSN: ISSN-0022-3808
The Distribution of Talent and the Pattern and Consequences of International Trade
Grossman, Gene M.
Journal of Political Economy, v112 n1 p209 Feb 2004
The author studies the interaction between imperfect labor contracts and international trade in a setting in which workers have private information about their own abilities. When an individual's contribution to firm output can be measured accurately in some activities but not in others, the most able workers select occupations in which their pay most closely reflects their own performance. In a world economy with two otherwise similar countries that have different distributions of talent, the country with the more heterogeneous labor force exports the good that is produced by the most talented individuals. In this country, trade exacerbates the "polarization" of the labor force and often worsens the distribution of income. (Contains 22 notes.)
University of Chicago Press, Journals Division, P.O. Box 37005, Chicago, IL 60637. Tel: 773-753-3347; Web site:; e-mail:
Publication Type: Journal Articles; Opinion Papers; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Japan; United States