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Intra-Industry Trade and Labor Market Adjustment in Taiwan

Author

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  • Chih-Hai Yang
  • Ming-Huan Liou

Abstract

This paper investigates the relationship between intra-industry trade (IIT) expansion and labor market adjustment in Taiwan. We adopt a panel data set containing detailed employment information and utilize various measures of labor market adjustment to conduct empirical estimations. After controlling for industry-specific effects and occupational composition, the empirical results demonstrate that IIT expansion does have a smoothing effect on labor market adjustment. Moreover, industries with abundant skilled workers experience lower employment adjustment costs.

Suggested Citation

  • Chih-Hai Yang & Ming-Huan Liou, 2013. "Intra-Industry Trade and Labor Market Adjustment in Taiwan," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(S2), pages 126-144, March.
  • Handle: RePEc:mes:emfitr:v:49:y:2013:i:s2:p:126-144
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    Cited by:

    1. Zhenshan Yang & Xunhaoyue Zeng, 2019. "Envisioning the Impact of the Belt and Road Initiative on Regional Labor Markets," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    2. Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 496-520, October.

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