How does the efficiency of skilled labor vary across rich and poor countries? An analysis using industry and trade data

This paper estimates the relative efficiency of skilled and unskilled workers across countries using a new method that relies on disaggregated industry and trade data. I document that the share of exports in skill-intensive industries rises sharply with income levels. Interpreted through the lens of a gravity model, this pattern suggests that rich countries have low relative unit production costs in skill-intensive industries.

• IPC
• Hannes Malmberg
• Stockholm
• efficiency of skilled labor very across rich and poor countries
• industry and trade data