Publication: A Many-Country, Many-Good Model of Labor Market Rigidities as a Source of Comparative Advantage
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Date
2009
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John Wiley & Sons Ltd.
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Cuñat, Alejandro and Marc J. Melitz. 2009. A many-country, many-good model of labor market rigidities as a source of comparative advantage. Journal of the European Economic Association 8(2-3): 434-441.
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Abstract
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.
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