Measuring the effects of international trade on labor market outcomes has never been more important given the increasing interconnections among economies around the globe. However, using measures of exposure to trade flows based on gross exports may lead to a misleading picture given that...

This paper estimates a dynamic general equilibrium model of entry, exit, and endogenous productivity growth. Productivity is endogenous both at the industry level (firms enter and exit) and at the firm level (firms invest in productivity-enhancing activities). The focus of the paper is on two...