We construct a task-based model of the ﬁrm’s choice of occupational inputs to examine how that choice varies with greater global engagement. We assume that more complex tasks are more costly to complete. Within the structure of our model, ﬁrms skew employment toward occupations engaged in more complex tasks. Moreover, the distribution of employment is more skewed for more globalized ﬁrms, while it is less skewed for larger ﬁrms. These results are consistent with our previous empirical ﬁnding.
Review of International Economics
Global Engagement, Complex Tasks and the Distribution of Occupational Employment
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