A Many-Country, Many-Good Model of Labor Market Rigidities as a Source of Comparative Advantage

Alejandro Cunat and Marc Melitz

Journal of the European Economic Association, 2010, vol. 8, issue 2-3, 434-441

Abstract: 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: countries with more flexible labor markets specialize in more volatile industries. (JEL: F1, F16) (c) 2010 by the European Economic Association.

JEL-codes: F1 F16 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (21)

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