@article{59c021867562458e9826cad83f566fef,
title = "Matching, sorting, and the distributional effects of international trade",
abstract = "We study the distributional consequences of trade in a world with two industries and two heterogeneous factors of production. Productivity in each production unit reflects the ability of the manager and the abilities of the workers, with complementarity between the two.We begin by examining the forces that govern the sorting of worker and manager types to industries and the matching of workers and managers within industries. We then consider how changes in relative output prices generated by changes in the trading environment affect sorting, matching, and the distributions of wages and salaries.",
author = "Grossman, {Gene M.} and Elhanan Helpman and Philipp Kircher",
note = "Funding Information: This is a revised version of our working paper (Grossman, Helpman, and Kircher 2013), with the new title better reflecting the focus of this article. Part of this research was completed while Grossman was visiting the Suntory-Toyota International Centre for Economics and Related Disciplines at the London School of Economics and the Centre de Recerca en Economia Internacional at the University of Pompeu Fabra and while Helpman was visiting Yonsei University as SK Chaired Professor. They thank these institutions for their hospitality and support. We are grateful to Rohan Kekre, Ran Shorrer, Kirill Borusyak, and especially Kevin Lim for their research assistance. Arnaud Costinot, Oleg Itskhoki, Stephen Redding, Dan Trefler, Harald Uhlig, Jonathan Vogel, three anonymous referees, and numerous seminar participants provided helpful comments and suggestions. Marc-Andreas Muendler graciously helped with the preparation of data presented in the online appendix. Finally, Grossman and Helpman thank the National Science Foundation and Kircher thanks the European Research Council for financial support. Data are provided as supplementary material online. Publisher Copyright: {\textcopyright} 2017 by The University of Chicago. All rights reserved.",
year = "2017",
month = feb,
doi = "10.1086/689608",
language = "English (US)",
volume = "125",
pages = "224--264",
journal = "Journal of Political Economy",
issn = "0022-3808",
publisher = "University of Chicago",
number = "1",
}