helpman et.al 2017
trade and inequality
fi rm wage component of inequality
systematic component
size and export status
positive exporter wage premium
two mechanisms self-selection ( firm selection into international trade)
market access (exporting feeds back into higher fi rm employment and wages)
however systematic component explains little variation
idiosyncratic component drives variation
my theory
what drives "self-selection" and "market-access"
is in the idiosyncratic component
regional capital market development X firm patient capital recipiency
interaction is access (unequal)
heterogenous firm-level comparative advantage
advantage in labor market adjustment after trade
interaction is politics (interest groups)
interaction is f(corporate governance)
the external environment in which firms operate
capital market environment and the legal and institutional system
corporate governance is the institutional condition that drives
the fi rm wage component of inequality
the positive exporter wage premium
and self-selection
and market access
