TY  - RPRT
        AU  - Meckl, Jürgen
AU  - Weigert, Benjamin
        TI  - Occupational Choice, Aggregate Productivity, and Trade
        PY  - 2011/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5497
        UR  - https://www.iza.org/publications/dp5497
        AB  - We propose occupational decisions of heterogeneous individuals as an alternative mechanism of explaining the distribution of firm productivities emphasized by empirical studies. Thus, we integrate the frameworks of Melitz (2003), and of Manasse and Turrini (2001) that establish the theoretical base of trade models with heterogeneous firms. Our model is technically much simpler than the Melitz approach while preserving the main results on firm-selection effects due to international market integration. Our approach paves the way for detailed analysis of institutions in a heterogeneous firm model to better understand the link between institutions and an economy’s productivity distribution.
        KW  - firm selection
KW  - heterogeneous productivities
KW  - intra-industry trade
KW  - occupational choice
        ER  -