Trade‐induced Skill Polarization

Gu, Grace Weishi; Malik, Samreen; Rocha, Vera

doi:10.1111/ecin.12834

Cited by 7 publications

(1 citation statement)

References 53 publications

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“…Example 2. Trade integration and skill distribution Gu, Malik, Pozzoli, and Rocha (2019) document the impact of trade integration on both the mean and the standard deviation of the skill distribution across municipalities in Denmark. Moreover, as argued by Hanushek and Woessmann (2008), skills are related to the income distribution.…”

Section: Introductionmentioning

confidence: 99%

Location-Scale and Compensated Effects in Unconditional Quantile Regressions

Martinez-Iriarte¹,

Montes‐Rojas²,

Sun³

2022

Preprint

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This paper proposes an extension of the unconditional quantile regression analysis to (i) location-scale shifts, and (ii) compensated shifts. The first case is intended to study a counterfactual policy analysis aimed at increasing not only the mean or location of a covariate but also its dispersion or scale. The compensated shift refers to a situation where a shift in a covariate is compensated at a certain rate by another covariate. Not accounting for these possible scale or compensated effects will result in an incorrect assessment of the potential policy effects on the quantiles of an outcome variable. More general interventions and compensated shifts are also considered. The unconditional policy parameters are estimated with simple semiparametric estimators, for which asymptotic properties are studied. Monte Carlo simulations are implemented to study their finite sample performances, and the proposed approach is applied to a Mincer equation to study the effects of a location-scale shift in education on the unconditional quantiles of wages.

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Section: Introductionmentioning

confidence: 99%