This paper studies the effect of imported inputs on relative skilled labor demand. To this purpose, it uses firm-level data for 27 transition countries and propensity score matching techniques. The results show that importing inputs induces skill upgrading: according to a conservative estimate,...

We study the effect of Artificial Intelligence (AI) on employment across US commuting zones over the period 2000-2020. A simple model shows that AI can automate jobs or complement workers, and illustrates how to estimate its effect by exploiting variation in a novel measure of local exposure to...

We study how financial frictions affect firm-level heterogeneity and trade. We build a model where productivity differences across monopolistically competitive firms are endogenous and depend on investment decisions at the entry stage. By increasing entry costs, financial frictions lower the...