John Morrow

Curriculum Vitae

Working Papers

Abstract. This paper establishes facts about the structure of production which several lines of theoretical literature have taken as a starting point, but for which there is little evidence. I empirically characterize developing country manufacturing sectors by whether skill mix (diversity or similarity) explains productivity, and how such productivity differences explain exporting. I find that two thirds of firms in a large cross country sample belong to sectors where skill mix is a signicant determinant of productivity. Interquartile productivity differences explained by skill mix are comparable in magnitude to training and imported inputs combined. Furthermore, most sectors best utilize diverse skills which theory suggests generate wage inequality through "superstar" wage effects. Evaluating the effects of productivity differences on exports, I find skill mix explains intersector variation better than physical or human capital. Put together, the results show that a more detailed view of human capital yields insights into productivity and export patterns.

Abstract. This paper presents improved, asymptotically valid test values for Benford's Law, a particular distribution of First Significant Digits. Also derived are new test values for heuristic tests used in the literature and small sample properties of the tests are investigated. Since not all data should be expected to satisfy Benford's Law, a simple method is presented by which all continuous distributions may be transformed to satisfy Benford with arbitrary precision and induce scale invariance, one of the properties underlying Benford's Law in the literature. This allows application of Benford tests to arbitrary samples, a hurdle to current empirical work. The results yield improved tests for Benford's law applicable to a broader class of data.

Is Selection on Firm Productivity a Third Gain from Trade? (Appendix)

Abstract. This paper addresses two questions: Do Selection Effects yield new Gains from Trade, distinct from Comparative Advantage and Scale Effects? If so, what is special about international trade in generating new welfare gains through Selection? Examining heterogeneous firm models, we find the answer to each question depends on the demand structure. For example, CES demand ensures selection is an optimal response to trade frictions, but is unique in this regard. The results highlight the role of demand in determining when Selection Effects are distinct, optimal and "anti-variety".

Other Projects

Course Papers