Capturing the notion of kaleidoscopic comparative advantage (Bhagwati, 1998), 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...

This paper tests the hypothesis that an increase in US trade with countries with weak effectiveness in the protection of intellectual property (IP) has expanded the threat of competitive imitation of US firms, and has contributed to the skill deepening of the 1980s. We draw on Thoenig and...

This paper analyzes the effects of trade liberalization on the level and volatility of factor returns, in a model with identical technologies across industries and industry-specific uncertainty. The results show an increase in the return to capital and, under certain conditions, a decline in the...