Is a Skill Intensity Reversal a Mere Theoretical Curiosum? Evidence from the U.S. and Mexico
A rising skill premium in two countries can be explained by the Heckscher-Ohlin model assuming a "skill intensity reversal." This assumption, however, poses an empirical challenge since past research has found little evidence for the so-called "factor intensity reversal." We now show clear-cut evidence for the existence of a skill intensity reversal.