A Many-Country, Many-Good Model of Labor Market Rigidities as a Source of Comparative Advantage
We extend the theoretical framework in Cuñat and Melitz (2007) to a many-country setup where countries exhibit different degrees of labor market fexibility. We rely on the insights from a recent paper by Costinot (2009) to obtain precise predictions about comparative advantage in this setting: countries with more fexible labor markets specialize in more volatile industries.
Year of publication: |
2009
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Authors: | Cuñat, Alejandro ; Melitz, Marc J. |
Institutions: | Department of Economics, Harvard University |
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