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Relative Prices, Trade and Restructuring in European Industry

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Author Info
Neven, Damien J
Wyplosz, Charles

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Abstract

This paper explores the link between trade and European labour markets by using evidence on relative commodity prices and intra-sectoral skill levels at the NACE three-digit level for the four large EC countries and for the period 1976–90. We find that if the relative import prices of unskilled labour intensive sectors have not fallen significantly over time, substantial and varied restructuring is observed in those sectors. Defensive restructuring, involving upgrading of skills and expansion, is about as common as the contraction of employment and wages predicted by the Hecksher-Ohlin principle.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1451.

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Date of creation: Aug 1996
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Handle: RePEc:cpr:ceprdp:1451

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Keywords: European Labour Markets Trade

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Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

Cited by:
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  1. Chiara Bentivogli & Patrizio Pagano, 1999. "Trade, Job Destruction and Job Creation in European Manufacturing," Open Economies Review, Springer, vol. 10(2), pages 165-184, May. [Downloadable!] (restricted)
  2. Haskel, Jonathan & Slaughter, Matthew, 1999. "Trade, Technology and UK Wage Inequality," CEPR Discussion Papers 2091, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. H. Boulhol & S. Dobbelaere & S. Maioli, 2007. "Imports as product and labour market discipline," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/479, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
    Other versions:
  4. Lisandro Abrego & John Whalley, 1999. "The Choice of Structural Model in Trade-Wages Decompositions," NBER Working Papers 7312, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. T. Huw Edwards & John Whalley, 2002. "Short and Long Run Decompositions of OECD Wage Inequality Changes," NBER Working Papers 9265, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Carsten Ochsen, 2004. "Zukunft der Arbeit und Arbeit der Zukunft in Deutschland," Thuenen-Series of Applied Economic Theory 45, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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  7. Lisandro Abrego & John Whalley, 2000. "Demand Side Considerations and the Trade and Wages Debate," NBER Working Papers 7674, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Michael Pflüger, 2003. "Trade, Technology and Labour Markets : Empirical Controversies in the Light of the Jones Model," Discussion Papers of DIW Berlin 328, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  9. Filip Abraham & Ellen Brock, 2003. "Sectoral employment effects of trade and productivity in Europe," Applied Economics, Taylor and Francis Journals, vol. 35(2), pages 223-238, January. [Downloadable!] (restricted)
  10. Koeniger, Winfried, 2001. "Trade, Labor Market Rigidities, and Government-Financed Technological Change," IZA Discussion Papers 241, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Hofer, Helmut & Huber, Peter, 2001. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Economics Series 97, Institute for Advanced Studies. [Downloadable!]
    Other versions:
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