Cuñat, Alejandro; Melitz, Marc J. - In: Journal of the European Economic Association 8 (2010) 2-3, pp. 434-441
We extend the theoretical framework in Cuñat and Melitz (2007) to a many-country setup where countries exhibit different degrees of labor market flexibility. We rely on the insights from a recent paper by Costinot (2009) to obtain precise predictions about comparative advantage in this setting:...