A Many-Country, Many-Good Model of Labor Market Rigidities as a Source of Comparative Advantage
AbstractWe 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.
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Bibliographic InfoArticle provided by MIT Press in its journal Journal of the European Economic Association.
Volume (Year): 8 (2010)
Issue (Month): 2-3 (04-05)
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- F1 - International Economics - - Trade
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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"Labor Market Institutions, Firm-specific Skills, and Trade Patterns,"
Discussion Papers Series, Department of Economics, Tufts University
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- Tang, Heiwai, 2012. "Labor market institutions, firm-specific skills, and trade patterns," Journal of International Economics, Elsevier, vol. 87(2), pages 337-351.
- Heiwai Tang, 2010. "Labor Market Institutions, Firm-specific Skills, and Trade Patterns," Development Working Papers 301, Centro Studi Luca d\'Agliano, University of Milano.
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- Gabriel Felbermayr & Mario Larch & Lechthaler Wolfgang, 2011. "Endogenous Labor Market Insitutions in an Open Economy," Ifo Working Paper Series Ifo Working Paper No. 108, Ifo Institute for Economic Research at the University of Munich.
- Peters, Heiko & Weigert, Benjamin, 2011. "Beschäftigungsentwicklung innerhalb multinationaler Unternehmen während der globalen Rezession 2008/2009," Working Papers 04/2011, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
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- Ferguson, Shon & Formai, Sara, 2013. "Institution-driven comparative advantage and organizational choice," Journal of International Economics, Elsevier, vol. 90(1), pages 193-200.
- Ferguson, Shon & Formai, Sara, 2011. "Institution-Driven Comparative Advantage, Complex Goods and Organizational Choice," Research Papers in Economics 2011:10, Stockholm University, Department of Economics.
- Ferguson, Shon & Formai, Sara, 2011. "Institution-Driven Comparative Advantage, Complex Goods and Organizational Choice," Working Paper Series 879, Research Institute of Industrial Economics.
- Alexandre Janiak & Etienne Wasmer, 2012. "EPL and capital-labor ratios," Documentos de Trabajo 288, Centro de Economía Aplicada, Universidad de Chile.
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