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Trade, Internal Migration, and Human Capital : Who Gains from India’s IT Boom? (Английский)

How do trade shocks affect welfare and inequality when human capital is endogenous? Using an external IT demand shock and detailed internal migration data from India, this paper first document that both IT employment and engineering enrollment responded to the rise in IT exports. IT employment responded more in regions with a higher college-age population. The paper then develop a quantitative spatial equilibrium model featuring two new channels:...
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