Trade liberalization shifts sectors to more competitive, impacting skilled worker wages.
The article explores how competition between companies in different industries can change based on their investment decisions. When firms invest in their capacity, they can either set prices like in a price war (Bertrand behavior) or produce a certain quantity (Cournot behavior). The study shows that when there are changes in the economy, some industries become more competitive while others become less competitive. This can happen due to factors like trade policies and new technologies, which can also affect the wages of skilled and unskilled workers.