Helpman, Elhanan; Itskhoki, Oleg - C.E.P.R. Discussion Papers - 2009
flexible country - which has lower labor market frictions - gains proportionately more. A flexible labor market confers … its labor market, but this harms the country’s trade partner. And the simultaneous proportional lowering of labor market … frictions in both countries benefits both of them. The model generates rich patterns of unemployment. In particular, better …