Several studies have identified the impact of trade liberalization in developing countries on the return to education within a Mincerian framework through a difference-in-difference estimator or with industry-level measures of trade openness. These studies have typically estimated the return to...

Distortions and resource misallocation cause large productivity losses, especially in developing countries. But removing (all) distortions is infeasible in practice. Policy-makers face second-best policy options at best. However, empirical studies typically do not show the productivity gain from...