abstract: 'This study proposes a simple theory of trade with endogenous firm

  productivity, occupational choice and income inequality. Individuals

  with different managerial talent choose to become entrepreneurs or

  workers. Entrepreneurs enhance firm productivity by investing in

  managerial capital. The model generates three income classes: low-income

  workers facing the prospect of unemployment, middle-income entrepreneurs

  managing domestic firms and high-income entrepreneurs managing global

  firms. Trade liberalization policies raise unemployment and improve

  welfare. A reduction in per-unit trade costs raises top incomes and

  generates labour-market polarization. A reduction in fixed exporting

  costs has an ambiguous effect on top incomes and personal income

  distribution. Policies reducing labour-market frictions or the costs of

  managerial-capital acquisition create more jobs and improve welfare. The

  income distributional effects of labour-market policies depend on which

  policy is implemented.'
affiliation: 'Unel, B (Corresponding Author), Louisiana State Univ, Dept Econ, Baton
  Rouge, LA 70803 USA.

  Dinopoulos, Elias, Univ Florida, Dept Econ, Gainesville, FL 32611 USA.

  Unel, Bulent, Louisiana State Univ, Dept Econ, Baton Rouge, LA 70803 USA.'
author: Dinopoulos, Elias and Unel, Bulent
author-email: bunel@lsu.edu
author_list:
- family: Dinopoulos
  given: Elias
- family: Unel
  given: Bulent
da: '2023-09-28'
doi: 10.1111/caje.12262
eissn: 1540-5982
files: []
issn: 0008-4085
journal: CANADIAN JOURNAL OF ECONOMICS-REVUE CANADIENNE D ECONOMIQUE
keywords-plus: 'TRADE LIBERALIZATION; INTERNATIONAL-TRADE; LABOR-MARKET; FIRM

  HETEROGENEITY; WAGE INEQUALITY; UNEMPLOYMENT; PRODUCTIVITY;

  GLOBALIZATION; EMPLOYMENT; DYNAMICS'
language: English
month: MAY
number: '2'
number-of-cited-references: '47'
pages: 365-397
papis_id: 0a69fc4c8ae9c0e9ac82e6ce8daa1f29
ref: Dinopoulos2017managerialcapital
times-cited: '12'
title: Managerial capital, occupational choice and inequality in a global economy
type: article
unique-id: WOS:000403590500002
usage-count-last-180-days: '0'
usage-count-since-2013: '5'
volume: '50'
web-of-science-categories: Economics
year: '2017'