September 1, 2009

Skill splits of labour input values in GTAP: An approach based on ILO and UBS data

Researchers working empirically at the intersection of labour market economics and international trade with macroeconomic interest need datasets with regional, sectoral and skill-specific detail.

Important strands of the literature where these interlinkages are centre stage are the testing of theories that explain the patterns of trade with factor endowments (Heckscher-Ohlin type), the analysis of the consequences of trade liberalisation for the distribution of income and the relocation of labour as a result of migration.

In this paper, we propose an approach to skill split data that can be used in a computable general equilibrium context, in particular when working with the GTAP dataset.