Traca, Daniel A. - In: Review of International Economics 13 (2005) 3, pp. 431-444
Capturing the notion of kaleidoscopic comparative advantage ( <link rid="b7">Bhagwati, 1998</link>), we show that international trade increases the volatility of profitability. In this framework, we address the labor market implications of an increase in openness, when insurance and credit markets are imperfect. With...