NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Volatility, Labor Market Flexibility, and the Pattern of Comparative Advantage

Alejandro Cuñat, Marc J. Melitz

NBER Working Paper No. 13062
Issued in April 2007

---- Acknowledgements -----

We are grateful to Pol Antràs, Gordon Hanson, Peter Neary, Barbara Petrongolo, Steve Redding, Tony Venables, Jaume Ventura, and seminar participants in Alicante, Banco de España, Bocconi, Cambridge, ERWIT 2006, Harvard, LSE, NBER, Oxford, Pompeu Fabra, Princeton, Valencia, the AEA 2006 Meeting, and the EEA 2006 Meeting for helpful discussions and suggestions. Kalina Manova, Martin Stewart, and Rob Varady provided superb research assistance. All errors remain ours. Cuñat gratefully acknowledges financial support from CICYT (SEC 2002-0026). Melitz thanks the International Economics Section at Princeton University for its hospitality while this paper was written. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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